MBIE clarifies supermarket consent introductions

The Ministry of Business, Innovation and Employment (MBIE) told Under Construction its role in facilitating introductions between supermarket developers and Christchurch City Council under the national centralised building consent service will be limited to information sharing, with consenting responsibility resting with the council 

The Government’s centralised building consent service for supermarket developments was introduced to streamline consenting and support increased competition in New Zealand’s grocery sector. The service is for non incumbent grocery retailers i.e. not Foodstuffs North Island, Foodstuffs South Island, or Woolworths NZ. 

Under the service, eligible standalone grocery buildings of 500m² or larger can choose to apply directly to Christchurch City Council (CCC) for building consent, rather than seeking approval through the local council where the development is located. Christchurch City Council was selected as the preferred provider following a competitive sourcing process. 

As part of the arrangement, MBIE is responsible for monitoring uptake and performance of the service and facilitating introductions between developers and CCC where required. 

MBIE role limited to information sharing 

An MBIE spokesperson said the ministry will not assess building consent applications or determine their eligibility, with that responsibility resting solely with CCC. 

“Where MBIE has been approached by a potential supermarket developer as part of the work we are doing on improving competition in the grocery sector, we will provide them with information about the national building consenting service, including contact details for the appropriate CCC team,” the spokesperson said. 

The spokesperson said developers do not need to engage with MBIE to access the scheme and that, in practice, most developers are expected to contact the council directly. 

Simple introductions, not formal facilitation 

Asked how introductions will occur in practice, the spokesperson said they are likely to take the form of an email passing on relevant contact information. 

The spokesperson said this would occur pre-application, after which the council would work with the developer to determine eligibility for the service and agree on an application process. 

No broader issues or risks being managed 

Asked what issues or risks MBIE is seeking to address by facilitating introductions rather than leaving engagement to occur directly, the spokesperson reiterated that most developers are expected to engage directly with Christchurch City Council. 

Monitoring effectiveness through enquiries and data 

On how effectiveness will be defined and measured, the spokesperson said MBIE will collect information on the number and nature of enquiries it receives from developers and passes to CCC. 

“This information will be considered alongside other data, such as reporting on statutory consent volumes and timeframes and client satisfaction surveys, as part of our assessment of the overall effectiveness of the national supermarket consenting service,” the spokesperson said. 

No ongoing coordination role 

The spokesperson confirmed MBIE will not play any ongoing coordination role once an introduction has been made, with responsibility transferring fully to the developer and Christchurch City Council.