Government to review urban planning rules

The Productivity Commission will undertake a first principles review of the urban planning rules, with its findings expected to be released late next year

Finance Minister Bill English says the Government has asked the Productivity Commission to review urban planning rules and processes, and identify the most appropriate system for land use allocation.

“Urban planning in New Zealand not only underpins housing affordability, but also the productivity of the wider economy,” Mr English said. “Many parts of the regime are out-dated and unwieldy, having been developed over the years in a piecemeal fashion. International best practice has moved on, and so must New Zealand.”

The Productivity Commission will undertake a first principles review of the urban planning rules that fall under acts such as the Local Government Act, the Resource Management Act, and the Land Transport Management Act, to ensure they support a responsive housing market.

“The review should look to consider alternative ways of delivering improved urban planning and, subsequently, development,” the terms say.

On TV One’s Q+A, Mr English said that the Government has asked the Productivity Commission to do some “blue-sky thinking”, but that over the next three to four years, it needs to make the current system work.

“There are homebuyers out there, who would prefer to be able to buy a home today. The Government is shelling out tens of millions more to subsidise accommodation costs in the high-growth markets, and we’ve got to keep working with councils to get the number of houses on the ground up faster.”

The Government’s proposed RMA reform was put on hold earlier this year.