SUBMISSION Improving our resource management system A discussion document

Transcription

1 SUBMISSION Improving our resource management system A discussion document TO: FROM: Submission on Improving our resource management system A discussion document Ministry for the Environment PO Box WELLINGTON 6143 The Chief Executive Officer Waikato Regional Council PO Box 4010 HAMILTON EAST 3216 The Waikato Regional Council appreciates the opportunity to comment on the Improving our resource management system A discussion document. 1 Submission structure This submission is in two parts. It is prefaced by a background section that sets out the Waikato Regional Council s interests. The body of the submission contains comments regarding the specific proposals covered in the six element reform package. In each circumstance a précis of the main elements of the reform is provided with an analysis of the implications for the Waikato Regional Council and its interactions locally and nationally and is concluded with a response and, where the response differs from the discussion document, an alternative is provided. 2 Waikato Situation The Waikato Regional Council generally agrees with the intent of the reforms and wishes to work constructively with central government, however, it sees problems ahead for progressing New Zealand s economic growth agenda as some of the proposed reforms will actively negate the current work of accessing resources through increased transition costs and a lack of alignment with co-reforms, namely the recently announced water reform programme. 2.1 Resource quality and green growth The proposed reforms are being made against a backdrop of reported delays and costs to developers. However, there is an additional issue, namely that after 22 years of the Resource Management Act (RMA), many key environmental outcomes are not improving. Section 35 RMA monitoring of natural resource condition indices in the Waikato region have indicated a decrease in quality of many of the resources we manage, including: an increase in the contaminant burden of surface and ground waters, primarily through intensification of resource and land use; an increase in the contamination of soils; a reduction in biodiversity in all ecosystems; increasing fragmentation and loss of indigenous vegetation; and a reduction in estuarine ecosystem quality rendering waters unsuitable for shellfish collection for 50% of the time, reduced. In contrast, where there is strong national leadership as in the case of the National Environmental Standard for air quality, monitoring results show a reduction of exceedances in managed airsheds. 1

2 The thrust of the proposed reforms is to make access to resources easier and are designed to reduce the costs of accessing resources for economic gain. This is understood and supported by Waikato Regional Council. However, it is considered that this reform should be undertaken with caution as the other environmental and social (including cultural) dimensions are not receiving support, despite the growing concern as to the currently measured reduction in quality and quantity of resources and the projected impact of climate influences over time. The Waikato Regional Council has recognised the interdependent nature between the region s economy and the wellbeing of its citizens with the use and development of natural resources. For the economy of the region to survive and thrive it must be founded upon a sound natural resource base. This is the rationale for the Waikato Regional Council s strategic direction as supported by the regional community in its long term plan 1 and its subsequent adoption of a green growth approach to its work. A Green Growth approach is aligned to the Council s strategic vision of Competing Globally, Caring Locally and reflects the reality that it is the international markets that will ultimately determine whether economic use of natural resources in the region are considered sustainable. It is in this way that the decision-making functions of the council are able to tactically balance the immediate economic, social, cultural and environmental matters within a strategic long term envelope of natural resources quality. With this in mind, the Waikato Regional Council has formed its response to the amended matters proposed in the revised sections 6 & 7 and to the relationships between the resource management reforms and those relating to freshwater management Integrated planning From the outset, the Waikato Regional Council recognised that a single regional plan was going to assist the Council in the exercise of its regulatory functions under the Resource Management Act (RMA), particularly the integrated management of natural resources. It was the first regional council to adopt this approach upon review of its Transitional Regional Plan in The justification for a large, all encompassing, all resource, pan-regional plan was strategic as it was recognised that once in place; it would have the following advantages: a single point of reference for all regional planning rules for users of the plan; elimination of duplication of common policy elements; elimination of potential variance between common policy elements through changes overtime; an ability to seamlessly address cross resource issues (e.g. land, water, air, geothermal interfaces ); and a reduction in the transaction costs of having to open up plans to multiple first schedule process when managing updates in response to changing circumstances, monitoring triggers or national directions. This innovative decision has served the council well over time as when changing or varying its plan it has been able to make consequential amendments to other resource specific modules of the same plan without the additional cost of a second or even third first schedule process. This has the advantages of ensuring that any particular policy/rule combination is always associated with the relevant resource module (chapter). This is also an advantage to plan users as clarity and relevance is maintained. The temptation to cram consequential changes and potentially unrelated rules into a single purpose plan as it happens to be the only one being changed at the time has been eliminated Freshwater reform 2013 and beyond: NZ Government March

3 It is the budgeted intention of the Waikato Regional Council to further integrate the regional planning framework with a single plan that incorporates a Coastal Marine Area as a module. This will allow further reduction in common elements and increased alignment across the land / sea and the river / sea interfaces. 2.3 Demographics The Waikato Regional Council has been mindful of the effects of the increase in population in Auckland and has been proactive in the consideration of the potential effects this may have on the region. This is evidenced by the initiation and establishment of the Upper North Island Strategic Alliance, now known as UNISA. Nowhere is the relationship of Auckland to the rest of the nation more graphically demonstrated than by the projected population increases for the next 20 years as illustrated in the following figure: Share of NZ s future growth will be most uneven Percentage of all growth Auckland and The Rest Source: Statistics New Zealand, Subnational Population Projections: 2006(base) 2031 (October 2012 update) NIDEA 17 The chart above clearly shows the asymmetric nature of New Zealand s projected population growth over the next 20 years 3. It is clear that there are only a few regions within the country expected to grow and these are either associated with cities or are in close proximity to Auckland. This will determine where the growth pressures will be focussed and by implication will also determine the ability for depopulating areas to fund the cost of the proposed reforms that are being required across the nation as part of the current proposal. It will also determine where forward planning for decline and depopulation must be practised and the affordability of reforms should be clearly costed. In the Waikato region the eleven territorial councils also reflect this pattern. At the end of the projection period only three territorial councils can be expected to have positive population growth. Hamilton City, and the two areas around the city, being Waipa District and Waikato District. Three areas are already in decline in the region, namely South Waikato, Otorohanga and Waitomo Districts. 3 Based upon 2006 Census. 3

4 Waikato Region: - Projected Population Growth Hamilton City 9,600 9,100 8,800 8,700 Hauraki District Matamata-Piako District Otorohanga District South Waikato District ,050-1,250 Taupo District Thames-Coromandel District Waikato District 3,000 2,300 2,200 1,900 Waipa District 1,800 1,500 1,300 1,100 Waitomo District Waikato Region 16,00 13,650 11,950 10,050 It is possible that planning for growth may only be relevant in a small number of regions as, by the end of the projection period only 11 territorial councils (nationally) are expected to have positive population gains. All others will be in decline. This is discussed later in the submission as part of reform Concurrent reform of freshwater management The Waikato Regional Council considers that there should be strong links between the two reform processes, given that they: are being developed by the same Ministry; are sponsored by the same Minister; have concurrent timing; are reliant on the same legislative changes for effect; and are reliant on the same agencies for implementation. Yet the Waikato Regional Council notes a fundamental disconnect with both the scale and process details between the two reforms that potentially render one of the options (3.2.3) That of a voluntary catchment scale joint process plan almost unachievable. The Freshwater Reform 2013 and Beyond clearly envisages a regional or at least a catchment scale approach to water and land management, yet the Resource Management reforms settle on a territorial scale as the default requirement is for a single resource management plan for each district. Throughout 2013, we wish to work constructively with central government and discuss further how each set of reforms fits together. The key linkages we have identified that require further discussion are: The link between Reform 1: Collaborative planning process, and the requirement for reducing the amount of plans ( 2: Fewer resource management plans in Improving our resource management system A discussion document). It is Waikato Regional Council s understanding that councils can choose to run a collaborative stakeholder process for the freshwater component of any plan, and can also choose to work together on a single integrated plan (say, for example, on the catchment area for the Waikato and Waipa River catchments). If this is the case, there will be limited appeal rights. Both 4 Statistics NZ Sub-national Projected Population Characteristics, 2006(base)-2031 update NIDEA 5 10 of 11 Councils as projections for Rotorua District Council are not included. 4

5 discussion documents are generally consistent on how the end result of the policy development will be decided although details do differ with respect to the makeup of Hearings panels etc. We also understand there is no time limit for councils to make final decisions on an integrated plan. If district and regional councils agree to take this approach, Waikato Regional Council has identified several key issues (Section of this submission) that require careful working through before any legislation is drafted. It will be difficult to achieve the desired outcomes of the water reforms if land use, erosion, the effects of other soil related issues and so on is being considered and managed at a territorial scale and not at a catchment or regional scale. This submission therefore advocates later on for the retention of a catchment or regional focus and the development of single plans at this scale. The catchment scale is preferred by the Waikato Regional Council. 2.5 Land Transport Management Act reform Waikato Regional Council is concerned with the lack of reference or consideration of implications from the recent reform of the Land Transport Management Act (LTMA). This is disappointing given the Discussion document contains a dedicated chapter describing links to other proposed reforms and initiatives that collectively aim to achieve the Government s overall objectives. The LTMA, along with the Resource Management Act (RMA) and Local Government Act (LGA), is one of the core statutory pillars for integrated planning in New Zealand. The potential flow-on effects from RMA proposals and, conversely, implications of changes to the regional land transport planning framework as a result of the Land Transport Management Amendment Act 2013 are not considered. The Government proposes to deal with this issue at some later date as outlined in section of the Discussion Document: "Potential improvements in the way the RMA interacts with other pieces of legislation, such as the Local Government Act, Land Transport Management Act and Conservation Act, also require further consideration." It is the consideration of the Waikato Regional Council that reference should have been made to the interrelationships of these important planning Acts upfront. This lack of integration across wider reform of the planning framework has been a key message from the Council and the Waikato Regional Transport Committee conveyed through their submissions to Government on the LTMA Bill and feedback to the Efficiency Taskforce and productivity commission. s in the Bill regarding regional transport planning, which have now been enacted, have direct relevance to proposals now put forward in the RMA Discussion document. Regional government is now responsible for developing a Regional Land Transport Plan (combining the Regional Land Transport Strategy and the Regional Land Transport Programme). It is important to note that the Regulatory Impact Statement behind the Bill premised the Government's initial thinking around LTMA reform of the transport planning framework on the support of strengthened longer-term spatial planning under the RMA. Waikato Regional Council questioned where regional transport planning would ultimately fit, under a shorter-term Regional Land Transport Plan, under strengthened Regional Policy Statements and regional or sub-regional spatial planning, or now as we see proposed in the RMA Discussion Document, as key inputs to single resource management plans. Under the proposed Discussion Document, planning for transport infrastructure would continue to occur at a regional spatial scale as required by the LTMA, and through RMA RPS policy 5

6 development and single resource management plans at smaller spatial scales. Our concern is with potentially losing a regional scale RMA approach for transport planning and other crossboundary issues as well as the integrated planning linkages between the RMA and LTMA. Waikato Regional Council s submission on the LTMA Bill advocated the need for statutory provision of spatial plans with links across the planning framework to ensure effective strategic planning. The RMA Discussion Document does not address the critical role of regional scale planning for the provision of linear (cross district) infrastructure such as required for transport. 3 Proposed Reform Package 3.1 Greater national consistency and guidance Waikato Regional Council acknowledges the value of central government direction in identifying those matters that all councils should recognise and provide for. The matters that central government considers important can be expected to change with time (e.g. Management of Natural Hazards) and a willingness to review the list is welcomed. Waikato Regional Council has long advocated for increased central government direction, particularly with regards to the principles in current sections 6 & 7 (RMA), and has been a positive supporter of the use of National Policy Statements and National Environmental Standards to achieve this. As a matter of principle, Waikato Regional Council prefers the exercise of national leadership and guidance through these means rather than direct ministerial intervention through order in Council processes as they are more transparent and there is an opportunity to engage in their development with a rigorous section 32 evaluation process Change the principles contained on sections 6 and 7 of the RMA The existing (hierarchical) matters found in sections 6 and 7 are to be combined into a single section 6 of matters that decision-makers are required to recognise and provide for. A new section 7 is provided to give guidance to decision-makers on the way these matters are treated. Key elements of the proposal are: The proposal requires a broad overall judgement be taken to the matters in new section 6. The proposal requires the protection of specified outstanding natural features and landscapes from inappropriate subdivision and development, and specified areas of significant indigenous vegetation and significant habitats of indigenous fauna, areas of aquatic habitat including trout and salmon. The Minister for the Environment s Technical Advisory Group on sections 6 and 7 RMA (TAG) report recommended regional documents to identify these and district plans to give effect to them. The proposed reform is silent on this. The treatment is similar to trees in the current Resource Management 2012 Reform Bill which increases specificity and hence certainty. A new section 6 matter requires the risks and impacts of natural hazards to be recognised and provided for Directive language (requirement to protect) is removed re historic heritage and areas of significant historic aquatic habitats including trout and salmon A new section 6 matter requires recognise and provide for the effective functioning of the built environment including the availability of land The reference to the maintenance and enhancement of amenity values and the quality of the environment is to be removed. 6

7 It is relevant to consider the recommendations of the Minister s TAG. It is argued by the TAG that as a result of the Act being developed when the position of the government was an economically liberal one, the wider suite of matters relevant to sustainable management were not all stated as the social and economic activities were relatively free to occur so long as environmental bottom lines were met. The overwhelmingly biophysical matters listed in sections 6 & 7 constituted environmental bottom lines to support interpretation of section 5 (2)(a),(b)&(c). The TAG refers to the way the Courts have interpreted the purpose of the Act as a broad overall judgement and have called this a fundamental mismatch or disconnect from the stated intention / interpretation of the government at the time. It proposes to rectify this by rewording the principles section to make the legislation conform to the court s interpretation. The Waikato Regional Council does not support this interesting approach. The effect of changing the wording from an environmental bottom line approach to a overall broad judgement approach moves the fundamental relationship between the elements of sustainable management from one that recognises that vibrant social and economic elements are dependent upon the quality and quantity of natural resources. This is never more so than with the rural economy of the Waikato region. The context within which the overall broad judgement approach is included will lead to increased costs as Courts will be asked to clarify the intent. It is clear from the Minister s road show on the current reforms (Hamilton, 21 March 2013) that section 5 RMA does not change, yet the overall broad approach is specifically linked to section 5 (the purpose of the Act) with the proposed wording, which states: In making the overall broad judgement to achieve the purpose of the Act, all persons... By linking the overall broad judgement approach to the purpose of the Act it is unclear if the approach relates to the sustainable management elements (social, economic, cultural and environmental) or to the matters to be recognised and provided for in proposed new section 6. It is the consideration of Waikato Regional Council that the intent of using the overall broad judgement should be clarified as pertaining to the matters relating to new section 6 as opposed to the sustainability elements of section 5 (RMA) as we are advised that these are not to be altered. By including the overall broad judgement approach in the manner recommended by the TAG and by excluding elements currently contained in section 7 (RMA) relating to the maintenance and enhancement of amenity values and the quality of the environment, and the finite characteristics of natural physical resources is tantamount to making a broad judgement on a narrower list of matters. It will allow trade-offs to occur between the elements of sustainability with potentially little guidance as to how the reasonably foreseeable needs of future generations will be able to be provided for without environmental bottom lines, below which it is risky to go. It is difficult to see how the future generations of the Waikato region will get access to the ecosystem services that current citizens and resource users get for free once they have been traded for money at present day values. Other than say that there is a mismatch between the government s drafting and the Courts interpretation, there is little evidence presented or analysis to say why the covering phrase: In making the overall judgement to achieve the purpose of this Act.. 7

8 should be included as it has the effect of amending the interpretation of section 5(2)(a),(b)&(c). We note that this was expressly excluded from the scope of the TAG review and of the current discussion document. There will be a requirement to map areas and features for significance without significance criteria and with a requirement for single district level plans there will be a mismatch of areas between districts. Regional councils have a capacity in systems, expertise and scale to undertake identification and mapping of specified outstanding natural features and landscapes from inappropriate subdivision and development, and specified areas of significant indigenous vegetation and significant habitats of indigenous fauna, areas of aquatic habitat including trout and salmon. This should be clarified as a section 30 (RMA) function. Waikato Regional Council notes the inclusion of the effective functioning of the built environment including the availability of land for urban expansion, use and development. Waikato Regional Council supports the inclusion of this new matter as sub-section 6(k) as it lends support to the work already collectively undertaken with Territorial Authorities of the region and is included in the Built Environment chapter of the proposed Waikato Regional Policy Statement which includes flexibility in growth planning requirements for the FutureProof area and the rest of the region. It should be restricted to areas of identified growth as it would have limited relevance to many rural areas and could produce unintended consequences. Waikato Regional Council questions the message being sent with the reduction in emphasis of a clear direction for maintaining the quality of the environment and for amenity values, at a time when monitoring information shows that most of these are either degrading or are being lost. It could be seen as a lowering of the bar, rather than a need-to-do-better approach. The council is firmly in the latter camp with a strategic focus on the long-term use of natural and physical resources such that they are able to provide an ongoing high quality base for the economic and social activity of the region s citizens and for its future generations. Waikato Regional Council considers that a tactical balance between the immediate economic, social, cultural and environmental matters is assisted by direction from central government in the form of the new principles. Careful consideration of the new principles would suggest that the deletions in particular (quality of the environment and amenity values) may make it difficult to achieve the long term strategic focus so important to achieve the purpose of the Act. Waikato Regional Council would welcome the reinstatement of current section 7(c) and section 7(f) RMA to new section 6 as one of the matters to be recognised and provided for when making decisions. Waikato Regional Council welcomes the recognition of the importance of historic heritage and its retention as a matter to be recognised and provided for. It is our understanding that the main threat to historic heritage is from inappropriate subdivision and developments. Historic heritage provides a link to previous generations and its most tangible expressions are to be found in the sites and buildings that remain to this day. These links with the sites and buildings of the past are easily lost if the primary agent for their demise is not also reflected in legislation as a matter to be recognised in plans. The Waikato Regional Council, therefore requests the at the original wording be reinstated Waikato Regional Council supports retaining the emphasis on the efficient use of energy and the link to renewable electricity generation. However, the proposed wording includes renewable energy generation. This is inaccurate as energy is not generated or created; it is transformed from one form into another with varying levels of efficiency and with loses associated with the process of conversion. The energy contained in renewable natural resources such as flowing water, differential air pressure, heat from within the ground or light from the sun is converted into electricity for transmission, that is it is the electricity that is being generated not the energy per see. 8

9 1. Waikato Regional Council supports the RMA principles being updated and presented in one section with the requirement to be recognised and provided for. 2. Waikato Regional Council does not support the use of the phase overall broad judgement as, when coupled with to achieve the purpose of the Act, it creates confusion regarding its application as it is not clear if the approach relates to the economic, social, environmental and cultural elements of section 5 (RMA) or to the matters to be recognised and provided for in proposed new section Waikato Regional Council requests the phase overall broad judgement be deleted and that any subsequent legislation refer to the section as matters to be recognised and provided for. 4. Waikato Regional Council requests that clarification be given in section 30 for the regional mapping of the specified outstanding natural features and landscapes and specified areas of significant indigenous vegetation and significant habitats of indigenous fauna, areas of aquatic habitat including trout and salmon. 5. Waikato Regional Council supports the inclusion of the risk and impacts of natural hazards as a matter to be recognised and provided for. 6. Waikato Regional Council requests the reference to historic heritage (new section 6(1)(h)) recognise the primary threat of inappropriate subdivision and development. 7. Waikato Regional Council requests the reference from renewable energy generation (new section 6(1)(j)) be corrected to renewable electricity generation. 8. Waikato Regional Council does not support the removal of the amenity values and the quality of the environment and the finite characteristics of natural and physical resources and requests their reinstatement as matters to recognise and be provided for Improve the way central government responds to issues of national importance and promote greater national direction and consistency where needed Guidelines developed with criteria to clarify when and how each national tool or combination of tools would be used. Amendments could be made to streamline the process for addressing urgent issues (without the Schedule 1 process) Waikato Regional Council notes that similar processes are available now to the Minister and in the Waikato region, new aquaculture areas have been added directly into plans via legislation. 9. Waikato Regional Council supports the development of guidelines to clarify the use of national instruments for matters deemed to be nationally important. 10. Waikato Regional Council considers that the way central government s intervention power is to be exercised is critical. If changes are to be made to local planning instruments there must be consultation with the relevant local authority as to how the 9

10 resultant intervention is to be implemented and whether Schedule 1 is used or not Clarify and extend central government powers to direct plan changes The proposal is to provide a stepped process for ministerial engagement in the planning process to direct plan changes with criteria in the RMA regarding the circumstances where this would be used. The steps are: Minister identify issue/outcome they want addressed and invite relevant council to set out how it is addressed Minister direct a plan change Minster to directly amend an existing operative plan (regulation-making power) The Waikato Regional Council notes that similar processes are available now to the Minister and in the Waikato region, new aquaculture areas have been added directly into plans via legislation. 11. Waikato Regional Council supports the development of clear criteria to identify what is in the national interest and note that this power for ministerial intervention should only be required in exceptional circumstances Make NPSs and NESs more efficient and effective Amend the RMA to improve the flexibility of National Policy Statements and National Environmental Standards by: allowing for establishing a combined National Policy Statements and National Environmental Standards process; clarify that National Policy Statements and National Environmental Standards can be targeted to a specific region or locality; and further streamline the process for National Policy Statements and National Environmental Standards Develop a non-statutory agenda to indicate which matters the government would consider for National Policy Statements or National Environmental Standards. Limiting the location of National Policy Statements or National Environmental Standards may be appropriate as some national matters may just target growth or urban areas. Combining National Policy Statements with National Environmental Standards is strongly supported as it mirrors the positive experience of the Waikato Regional Council with the review of its geothermal policy and rules for implementation 6. All too often there is a temptation to clutter the development and presentation of a policy with implementation elements. With the two instruments open at the same time and subject to the same decision-making process, an integrated approach can be taken and then the respective elements can be identified and placed in the appropriate document. 6 WRC Geothermal Change to the Regional Policy Statement (DM# ); Geothermal Variation 2 to the Waikato Regional Plan (DM# v6) 10

11 Local government needs to be involved in the development of National Policy Statements and National Environmental Standards so that these instruments fully deal with implementation issues and potential costs. National Policy Statements need to do more than to repeat the words of the RMA and to add value must be developed using a rigorous public process with a s32 (RMA) style approach so the public retains confidence in the government and the instrument and councils can implement the National Policy Statement / National Environmental Standard understanding what they need to do and why. Waikato Regional Council would support investigating the potential for direct insertion of National Policy Statement provisions into plans. Waikato Regional Council has also advocated for guidance on sea level rise (standard) and for landscapes (policy) but this has not occurred to date. As a matter of principle, Waikato Regional Council considers all matters in section 6 (RMA) should have National Policy Statement / National Environmental Standard treatment If it is good enough to make it a matter to recognise and provide for then it is appropriate to have some level of national guidance. 12. Waikato Regional Council supports the ability to develop and promulgate combined National Policy Statement / National Environmental Standard instruments to allow a comprehensive guidance package to be put forward in response to an issue. 13. Waikato Regional Council considers, as a matter of priority, guidance in the form of a National Policy Statement / National Environmental Standard should be made on the elements of new section 6 (RMA). 14. Waikato Regional Council supports the development of a non-statutory three yearly agenda or programme and clear criteria to determine priority and necessity for national intervention. 15. Waikato Regional Council considers, the cost of implementation should be recognised when the agenda and development process is being set. 3.2 Fewer resource management plans Require single resource management plans using a national template that would include standard terms and definitions All district councils are to have a single plan in place within five years (per district or a broader area if agreed by the councils). The timing can be varied depending on plan review cycles and the single plan to be consistent with new national planning template. The single plan would provide for arrangements agreed through Treaty settlements Single plan As mentioned in section 2 of this submission Waikato Regional Council has already and from the earliest opportunity embraced the single plan concept. It was not undertaken lightly as the development of the plan was administratively complex and costly at the time but it has paid dividends not only to the ratepayers for reduced updating costs, but it is anticipated for users as 11

12 well as projects that require authorisations to use a number of resources can be permitted from the same document. The district scale single plan proposal would require the Waikato Regional plan of 689 pages to be reproduced eleven times and added to the district plans of the region. This in itself would seem to be a mere packaging exercise and would not add anything to the usability of the document. Firstly it would be more cumbersome and secondly, would not add anything materially to that which is currently available on line. It is noted that the text of the December 2011 National Party s Confidence and Supply Agreement with ACT New Zealand 7 requires legislation to be prepared that ensures there is a single plan for each district. A key change that both parties will work to achieve is in the planning area; where there is a need to reduce the clutter of planning documents and increase the efficiency of the planning process. ACT and National support simplifying the planning process, and will legislate to ensure that there is only one plan (a unitary plan) for each district. This defines the scope (limited to plan) and the scale of the reform, however, it must be considered a missed opportunity that this commitment does not appear to be subject to a section 32 (RMA) type analysis of costs and benefits. If it had been, the scale might be regional with the consequential costs to and the additional burden on ratepayers of the transaction costs reduced. According to the Productivity Commission s draft paper, 70%, of businesses operate in only one Territorial Authority area. This is not surprising, given that the vast majority of businesses in New Zealand are small to medium sized enterprises. However, Waikato Regional Council considers this statistic is misleading and under-states the problems of variation in regulation between councils. The Commission appears to have aggregated building permits, subdivision consents, land use consents and all discharge consents to reach its figure of 70%. The remaining 30% of businesses who do encounter cross-jurisdictional issues are likely to be larger national and international companies and those involved in our important economic sector such as food manufacturing, forestry and wood processing. These 30% of businesses are likely to contribute significant value to the economy. A shift to single plans at a district plan scale will have unintended consequences and costs for larger industry sectors. Not only will companies in these sectors have to look at 67 single plans for regional rules, any regulatory impedance is likely to have a high economic cost for these companies and the country Role of the Regional Policy Statement The Discussion Document does not specifically mention whether it is the intention of the reforms to include regional policy statements into the district scale single resource management plan. The terminology used during the MfE road show (Wellington 12 March 2013) is for a single resource management document and in response to specific questions on this point it was stated in answers that it is intended to include the Regional Policy Statement in the single plan. The Waikato Regional Council notes the limitation to a district scale single plan in the text of the discussion document and the coalition agreement document, however, in light of the public meeting responses will address the inclusion of the Regional Policy Statement in the single plan proposal

13 In the Waikato case, if the Regional Policy Statement is also to be added to the each district s single plan an additional 240 pages would be required to each district s plan, taking the total number of pages to address regional matters in each of the 11 district plans in the Waikato region to over 900 pages. This is in addition to the original size of each district plan and some of those are substantial. This is an incredible and unnecessary duplication of effort and resources which could be more profitably spent either on community projects to achieve positive environmental outcomes or more appropriately as reduced rates. Should the regional council and territorial authorities agree to develop a number of joint, catchment defined plans as is proposed in section 3.2.3; the need for a single overarching Regional Policy Statement would still exist. This is the role of achieving intra-regional alignment (section 59 RMA) between the joint plans (and any other single plans within the region), interregionally under section 61(2)(b) RMA and with plans and strategies prepared under other legislation Focus on the Plan user The additional costs imposed by the proposal will be particularly keenly felt by all territorial authorities outside main centres. As discussed in the following section, all remaining territorial authorities have a declining population and hence rating base. The increased focus on the plan user is supported by the Waikato Regional Council. What developers and resource users want to know with certainty is what can they do and where, in essence What are the rules? Certainty of process is also important. The high level policies that provide alignment with other Acts and direct the writers of rules as found in the Regional Policy Statements are likely to be of little interest to a user of the regional or district plan. This is particularly the case as Regional policy Statements are already incorporated into Regional and District plans as both have been required to give effect to it since From a user s perspective, there is no more need indeed it would be repetitive to include the Regional Policy Statement as it would be for National Policy Statements or National Environmental Standards to also be included as both are required to be given effect to in the single plan proposal. The Discussion Document on page 42 has the statement that: Users of planning information would benefit by being able to find all the provisions they need in one location Waikato Regional Council agrees with this and notes that they can now and it is on their computer screen. The use of consistent terms and conditions as well as definitions (proposed template) would further assist this and so would the development of a search engine that would be driven by activity and location. It would seek out the relevant provisions with certainty for an activity irrespective of whether those have been generated at national (regulations or National Environmental Standards), regional (resource allocation) or territorial (land use and subdivision provisions) levels Regional Integration It is the consideration of the Waikato Regional Council that the effect of the 2005 Reforms already go some way to address issues of inconsistency between RMA planning documents both within and between districts, but that the proposed reforms focussed on the district plan scale without an overarching Regional Policy Statement to provide inter-plan consistency have the real potential of creating and increasing inconsistency within a region. This would be a retrograde step for those matters that require integration at the regional scale including but not limited to: 13

14 Management of river scale natural hazards; Integrated catchment management; Water quality management; Provision and management of infrastructure (particular linear infrastructure); Land supply; Inter-regional connections - were over time subject to increasing divergence. Eleven independent single plans (district scale) create the real possibility of regional scale management policy and rules being subtly changed to suit each plan creation, variation, change process. This not only creates inconsistencies but also increases the costs of linear infrastructure providers and other businesses working at a greater than district scale. This has the potential to occur with this proposal (3.1.3) or the multiple joint-plan (3.2.3) proposal. It was noted by Waikato Regional Council elected representatives attending the Minister s roadshow (Hamilton 21 March 2013) that one of the key drivers for the current reforms was the avoidance of duplication of RMA planning effort. The single plan proposal and further streamlining of resource consent requirements are seen to be responses to this goal. However, Waikato Regional Council does not consider these in themselves would be sufficient to reduce the duplication between some regional and territorial functions and would like to invite the Minister to consider that there may be other ways that either in concert with the single plan or in isolation, would provide plan users with more assistance in the reducing the number of permissions required for development proposals. The subtle wording of section 30 and 31 (RMA) functions creates overlaps that require the Regional Policy Statement under section 62(1)(i)(h)&(2) to sort out for each region, thus creating a focus for inter-agency interests in each Regional Policy Statement. It is considered that this could be substantially defused if the relative roles of regional and territorial matters were addressed up front through clarification via changes to sections 30 and 31 RMA. This would result in reduced duplication of permits for users and a reduction of costs with the preparation of RMA Regional Policy Statements and plan. A further anomaly in the proposed model is the relationship of the single district plan with the plan for the Coastal Marine Area. As Territorial Authority boundaries do not extend into the Coastal Marine Area. There will still need to be a Regional Coastal Plan as this is required by section 64 (RMA). This would by definition not be a district plan although in many respects it fulfils that function (the allocation of space) in the Coastal Marine Area. Indeed the Regional Coastal Plan is both a combined district plan and regional plan for the Coastal Marine Area. The second generation RMA plans have yet to come on stream as the following table for the Waikato region shows. There is no reason to think that this is atypical of the national situation. Local Authority Status of Regional/District Plans as at March 2013 Plan Change 1 (Healthy River Plan for Change) being prepared, rest of Regional and Coastal Plans to be reviewed in 2015 Waikato Region Proposed Regional Policy Statement, Appeals and s274 received, preliminary discussions being held with appellants. Hamilton City Submissions on proposed plan close end March Hauraki District Appeals mediation underway Matamata-Piako District Rolling review, with hearings on Rural chapter in March Otorohanga District Appeals mediation underway Rotorua District Submission period just closed South Waikato District Further submission period 14

15 Taupo District Thames-Coromandel District Waikato District Waipa District Waitomo District Scoping natural hazards plan change, deferred until post October election Reviewing comments on issues, with natural hazards plan change appeals complete. Proposed District Plan to be notified August Rolling review on some aspects, bulk of Plan not reviewed. Some plan changes in hearings and appeals Presently in district plan hearings phase. Scoping plan review. Plan review scheduled to begin (with information gathering phase) July Notification date expected 2014/15 year. In most cases it will be apparent that the respective communities are nearing the end of a major exercise and significant investment to update their regional and district plans to second generation (2G) standard. These 2G plans are only now coming into effect and are aligned with the relevant Regional Policy Statement. In effect the proposed reform will require them to start again. It is likely that there will be considerable community reluctance to undertake a further district planning exercise given that the new 2G plans have all been prepared after the significant 2005 RMA reforms which required both district and regional plans to give effect to the Regional Policy Statement. To have this investment overturned by the requirement to start again using a national template would be counter to the New Zealand government s stated aim of keeping rates down. The differential roles of the Regional Policy Statement / Regional plans and District plans have not been appreciated here. Infrastructure is not covered by this discussion document and the alignment / connectivity provided between and across a region via a Regional Policy Statement between land use and infrastructure is at real risk of being lost. It is also pertinent to note that the Regional Policy Statement has power over other statutes as well (it aligns the RMA land use with the programme / operational functions of Regional Land Transport Plan and the Regional Pest Management Strategy) and this could potentially also be at risk New Principles section While the costs of preparing a single plan have not been estimated, there is recognition that this will not be the only cost as the new principles section will need to be reworked into any new plan. This is expected to be less than the preparation of the first generation of RMA plans 8 which was considerable but also did not receive the same level of public scrutiny that recent RMA plans do. The discussion document recognises that the simplistic concatenation of RMA plans at a district scale will not be sufficient and that new plans will be required. This is a realistic expectation. Even if only some of the package was adopted, any substantial change to either the RMA s principles or the planning system would probably require new plans (page 71) This does not recognise that there will also be implementation matters that will need to be addressed and costed; for instance an expectation that regional advice will be available at the level of the single plan. New service delivery models will need to be developed and funded including plan maintenance, administration and enforcement. 8 Section What the proposed package would cost; Improving our Resource management system - A discussion Document, March

16 Template Waikato Regional Council supports the use of common definitions and a nationally defined template for plan structure. It is anticipated that this will allow more efficient and effective policy guidance from central government as policies, standards and rules will be able to be generated at the national level and be inserted directly into the relevant plans without the need for reformatting, re-interpreting or worse an additional First Schedule (RMA) public process. 16. Waikato Regional Council supports the intent of reducing the number of RMA plans within a region. 17. Waikato Regional Council does not support the use of arbitrary social boundaries (communities of interest) to determine the scale of the single RMA plan as it will not allow the full benefits of integrated plans and will have the effect of increasing costs and further adding to confusion. 18. Waikato Regional Council advocates for plans to be developed at a regional scale to allow for the alignment with concurrent water reforms (based upon surface water catchment). 19. Waikato Regional Council advocates for decision making at a regional scale for natural hazards, transport, infrastructure and land use (except that relating to local place-shaping). 20. Waikato Regional Council agrees with the intent of focussing the usability of RMA plans and does not consider this will be enhanced with the inclusion of the Regional Policy Statement. 21. Waikato Regional Council does not support the inclusion of the Regional Policy Statement as part of the single RMA plan within each region. 22. Waikato Regional Council supports standardising some definitions and terms across the sector but notes they will require plan changes because rules will be based on a definition specific to a plan. 23. Waikato Regional Council considers the proposed package of reforms do not go far enough to achieve the aims of reducing duplication and would support the further clarification of section 30 and 31 functions of regional and territorial councils. 24. Waikato Regional Council supports the preparation of a nationally developed template to align common terminology and provide a common structure for plans to allow direct central government input into plans without the need for additional transcription and editing for format. 25. Waikato Regional Council wishes to be included in the development of the common terminology and format for a national plan template An obligation to plan positively for future needs including land supply Change sections 30 and 31 to require Council s to manage for positive effects as a core function. 16