I move, That the Public Works (Critical Infrastructure) Amendment Bill be now read a second time.
This bill proposes amendments to the Public Works Act 1981 (PWA), which is a crucial tool for acquiring and managing land to support public infrastructure projects. The bill contains targeted amendments to the Public Works Act, specifically focused on speeding up the delivery of critical infrastructure projects—that’s a term to which I will return shortly to define. Of course, other detail within the bill, as reported back from the select committee, can be found in the legislative statement, so I don’t intend to rehearse that in detail. In short, we want a faster and fairer fashion for the acquisition of land under the PWA for these critical infrastructure projects.
Members might realise that later this year, I intend to introduce a bill that will propose broader changes to the PWA, to improve its efficiency, effectiveness, and clarity, following a review of the Act involving an expert advisory panel last year. I want to say it, again, publicly, for the record, my thanks to that panel for their expert and very prompt deliberation on these matters.
I’d also like to add my acknowledgments and thanks to the members of the Transport and Infrastructure Committee, chaired by Mr Andy Foster, and a number of other members who are present in the House today—as, indeed, the chair himself is, I see. I’m grateful for their scrutiny of the bill. They have improved it through their hard work, thoughtful consideration, and have made valuable improvements accordingly.
I also want to thank everyone who contributed through submissions. The insights and expertise shared by experts, industry, and the public alike have further strengthened this proposed legislation: the system working as it should.
I do wish to point out, before I go any further, that there is an urgent need in this country to address our infrastructure deficit and for critical infrastructure to be built at a faster pace to support New Zealand’s economic growth and productivity. Through progressing this bill, we can address the deficit and reduce the costs and delays associated with the uncertainty when developing critical infrastructure. Of course, this sits alongside other Government measures in the resource management and planning space, including that which has just been passed by this House.
This bill outlines an accelerated process for acquiring land for public works that are of national or regional significance. It is targeted and only provides for a finite set of projects. Eligible projects must be either listed on Schedule 2 of the Fast-track Approvals Act 2024 or the roads of national significance identified in the Government policy statement on land transport 2024. Only those agencies that can use the Public Works Act to acquire land—being the Crown, local authorities, and network utility operators that are requiring authorities—will be able to use the critical infrastructure process. Private entities cannot acquire land under the Public Works Act, and this bill does not change that fact.
The accelerated process for eligible projects is aimed at addressing the key barriers to efficient delivery, including insufficient incentives for landowners to agree early to their land being acquired and delays caused by objections. The bill targets these issues to streamline delivery, including through premium payments, in addition to standard PWA compensation measures, to recognise and incentivise impacted landowners, and introduces a written submission process in place of the right to object to the Environment Court. I’ll speak more about these shortly.
It’s also important that I point out that the bill will introduce, or maintain, multiple safeguards. It will retain requirements to attempt to acquire land by agreement and negotiate in good faith with the owner first before the issuing of a section 23 notice of intention to take land.
The Environment Court process will remain for objections to the acquisition of protected Māori land for critical infrastructure projects, as it can only be acquired through the standard Public Works Act process and not the accelerated process. Judicial review will remain as a judicial check, and the Land Valuation Tribunal can still determine compensation claims. And I clarify that that applies to all the projects caught within the regime and the fact that protected Māori land can sit outside the regime is a further and separate point to that. Finally, I point out that the bill requires that the processes outlined within it be reviewed after three years to ensure that the amendments are fit for purpose.
I move now to key elements of the bill and the amendments proposed by the committee, which again, I acknowledge and thank them for. The several changes that they recommended for the purpose of clarity, workability, and consistency are outlined in their report, so I don’t intend to focus on all of them today, but I would, encourage anyone who’s interested in further information about these to read that report. I will instead focus on the committee’s key recommendations that have resulted in changes to the bill.
The new written submissions process streamlines a very slow process that can take between six and 12 months for an objection to be heard by the Environment Court—submissions of course, in relation to the project, as opposed to the submissions to the select committee. The committee identified that the proposed time frames for the written submissions process may be too restrictive, for example, where there are multiple owners to liaise with, landowners live rurally, or where unexpected circumstances create challenges, such as sickness or bereavement.
The committee recommended to retain the time frames as they are currently in the bill—10 working days for each stage of the process, except for making a submission, which is 20 working days. However, the committee did propose changes to remove a limit that only allowed for one extension of 10 working days. It recommended that each stage of the process can, instead, be extended by a maximum of up to 20 working days. I agree that this change strikes the right balance of allowing flexibility to grant landowners more time, when reasonable, while still capping the overall extension time to maintain time efficiencies. It’s a balance, in other words, and I’m grateful to the committee for helping us to strike that correct balance.
I move now to designation requirements. The bill had set out that land required for critical infrastructure projects could not be compulsorily acquired, unless the designation under the Resource Management Act was in place for the project. A designation is, as the name suggests, an area of land designated for a public work, such as a road or school. It allows for works or projects by requiring authorities, that is the Minister of the Crown or local authorities, to progress on the site or route without needing a land-use consent from the council or complying with any rules in the district plan.
The committee heard from the Public Works Act users that the designation requirement may create barriers for some projects, contrary to the intent of this legislation to speed up the process. For example, some projects run the designation and land acquisition processes concurrently and other projects choose to seek a resource consent rather than a designation, deeming them ineligible. The committee recommended, therefore, that the requirement be broadened, and I support this approach.
Requirements can now be met where the project is allowed under the Resource Management Act, has resource consent, has a designation, or where a notice of requirement for the project has been given under the RMA, or a designation application has been lodged under the Fast-track Approvals Act 2024. This change removes unnecessary barriers for using the accelerated process to meet the bill’s objectives of speeding up delivery.
Speaking of speeding up delivery, with two minutes left, I’ll just point out that landowners whose land is acquired for a critical infrastructure project will be eligible for an incentive payment that includes 15 percent of their land value with a minimum of $5,000 and a maximum of $150,000 payment, if they agree to the purchase of their land early. An agreement must be made before a section 23 notice of intention is served, which begins the compulsory acquisition process. A recognition payment of 5 percent of the land value, with a minimum of a $5,000 and a maximum of a $92,000 payment will also be made available for all landowners whose land is acquired or taken for a critical infrastructure project.
The committee has recommended clarifying how the payments will apply in circumstances where the landowner whose land has been designated obtains an order from the Environment Court under section 185 of the RMA, meaning that their land must be acquired by the requiring authority under the PWA. The select committee recommended to set out that acquisitions for critical infrastructure under section 185 of the RMA will be eligible to receive the recognition payment. This change aligns with the intent of the proposal. However, as such proceedings are initiated by the owner, landowners in these circumstances will not be eligible for the incentive payment.
In closing, I do want to again acknowledge the valuable suggestions made by the committee in their report to bring the bill to this stage. I appreciate that they carefully considered the experience of landowners in the process and that they provided ideas for improvements to the bill. New Zealand needs and deserves critical infrastructure to be delivered faster, to support its growth in the economy, and I believe that we are achieving a faster and fairer regime through the amendments suggested by the select committee and the legislation itself. For that reason, I commend this bill to the House.