Thank you, Madam Speaker. I move, That the Building (Earthquake-prone Buildings) Amendment Bill be now read a first time. I nominate the Transport and Infrastructure Committee to consider the bill.
The earthquake-prone buildings system aims to prevent loss of life, and injuries, by requiring earthquake-prone buildings—or EPBs—to be identified and remediated within set time frames. However, the system has failed to target the nation’s resources, both public and private funds, to target the most truly high-risk buildings, with over 8,000 buildings caught up in the regime since its inception in 2017. However well intended those changes were at the time, following, of course, the tragedy that was the earthquakes in Canterbury, with significant loss of life, nevertheless it’s appropriate for us to observe in 2025 that the rules have placed significant costs on to building owners and communities.
Before I proceed further with a bit of the detail of the bill, by way of its explanation at the first reading, I do want to acknowledge a very pleasing level of bipartisanship within this House. Obviously, I don’t prejudge what the other parties will say, but certainly up until this point we’ve had really good dialogue with interested parties, by which I mean political parties in central government, but also local government has been a really important partner in changes. Indeed, the idea of reforming the system, and certainly to have legislated a pause in the enforcement of the current regime, actually came from local government first of all—so, as territorial authorities and as the regulator but also, of course, oftentimes its owners of many of these buildings throughout New Zealand, both the large cities and rural, regional communities, alike, I do want to acknowledge their work and their partnership, along with the expert review panel with a broad range of interests, stakeholders, experts, and affected parties such as owners.
The Building (Earthquake-prone Buildings) Amendment Bill will refine the existing earthquake-prone building provisions in the Building Act 2004. This bill replaces what is known as Subpart 6A, currently, in Part 2, and it updates relevant and related parts of the Act, making consequential changes to the regulations to ensure a more consistent and effective system. These amendments support the Government’s wider goals of improving regulatory quality and helping to deliver more affordable housing to Kiwis in the case of residential-type structures.
I will now outline the key changes contained in the bill, which cover four areas: (1) refocusing the EPB system on high-risk buildings in medium- and high-risk zones; (2) removing the use of earthquake ratings, the current percentage New Building Standard—or NBS—system, and detailed engineering assessments; (3) reducing barriers to remediation; and (4) providing more flexibility for building owners.
In terms of that first category, Madam Speaker, which is to focus the EPB system on high-risk buildings in medium- and high-risk zones, I’ll point out, as you would expect from that description, that we’re narrowing the scope of the system. Only two types of buildings will remain within the system, and that’s buildings designed before 1976 that are three storeys or higher and are built from heavy materials like concrete, and unreinforced masonry buildings, such as those made of brick. These are the buildings most likely to cause harm in an earthquake and they must be in medium- or high-risk seismic zones, and, of course, “high risk” and “medium”, for that matter, are relative terms, but of course there are many dangers to the built environment in the hazard-exposed nation in which we live.
The “identify at any time” pathway, as it’s known, is also being narrowed because, currently, too many buildings have been identified as EPBs using this avenue or pathway, but there will still be an ability to capture buildings akin to the CTV Building in Christchurch. Obviously, we’re familiar with the tragic consequences of a collapse of a building that would not necessarily be captured by the rules in the traditional way. These are newer, heavy material buildings—those designed after 1976, but completed before 2027—that pose a high risk. These can be designated as earthquake-prone only with the approval of the Chief Executive of the Ministry of Business, Innovation and Employment (MBIE). Buildings of this type that have already been designated as earthquake-prone will retain that status.
The bill also updates the seismic hazard zones. Coastal Otago, including Dunedin and Stewart Island, will become a medium seismic zone, updating our understanding of the current scientific reality regarding our seismic risk. But existing remediation deadlines and identified, identify—identification time frames will not change. I’m updating my time frame to complete that sentence, Madam Speaker! Meanwhile, buildings in lower-risk areas—again, emphasising that’s a relative term—such as Auckland, Northland, and Chatham Islands will no longer be considered earthquake-prone from the day of Royal assent. These areas are farther from plate boundaries or major faults, and the faults that do exist often move very slowly or haven’t ruptured in a long time, making strong earthquakes much less likely to occur. I’ve heard Auckland’s volcanic field mentioned by some stakeholders, but studies do show that the rate of seismicity there is still low compared to other volcanic regions in New Zealand.
Other out-of-scope buildings that are not the required or specified building types will be identified by territorial authorities, with help from MBIE, and removed from the system from 1 July 2027. For buildings that remain earthquake-prone, on the other hand, territorial authorities—basically, your councils—will determine their required remediation measures in accordance with the updated EPB methodology, issue updated EPB notices, and keep the register up to date.
Finally, we’re tightening the definition of “priority buildings”. From now on, only those that could fall on to a busy street, or block a strategic transport route, will qualify. Buildings that were previously priority simply because of their use, such as hospitals or fire stations, will lose that status, and their deadlines will be updated accordingly. These changes mean clearer rules and a stronger focus on the buildings that matter most for public safety.
Moving now to the second category—removing the earthquake ratings and detailed engineering assessments—we’ll also be changing how we assess earthquake-prone buildings to make the process more streamlined. We’re removing earthquake ratings—commonly known as the percentage of New Building Standard, or NBS—and detailed seismic assessment. The process for identifying new EPBs will be simpler and, therefore, less expensive, with either an engineering evaluation or evidence and information to be provided by the building owner. This approach also disincentivises repeated seismic assessments in search of a different, more favourable NBS percentage rating. Once the territorial authority has the necessary information, it will decide whether the building is earthquake-prone, determine any remediation requirements, issue an updated EPB notice, and update the register. These changes mean faster decisions, less complexity, and a stronger focus on public safety.
Moving now to reducing barriers to remediation. We’re introducing a tiered approach to remediation measures. Requirements will range from risk notification only, through to targeted retrofits for heavy construction buildings, to façade securing, or full retrofits for unreinforced masonry buildings—again, think brick buildings. For smaller unreinforced masonry buildings, those of one or two storeys outside urban centres, no remediation will be required and they won’t need to display an EPB notice, either. However, they must undergo façade securing if they wish to have their EPB status removed.
Moving now, finally, to the subject of flexibility for building owners, we’re introducing more flexibility in terms of deadlines. Owners can apply for extensions of up to 15 years, even if their original deadline had already expired before commencement. Territorial authorities must have regard to factors like ownership of structure, the type of remediation required, steps already taken, and whether the building is a priority building. Conditions can be imposed to manage risk, and failure to comply with those conditions could mean that the extension is revoked.
This bill is also making it easier to get a consent for seismic work and helping to reduce the cost of that work. The royal commission of inquiry into the Canterbury earthquakes, as referenced previously, recommended that the Building Act be amended to enable building consents to be issued for strengthening works, without requiring compliance with disability access and facilities provisions as nearly as is reasonably practicable. If the work relates to only the necessary seismic work, authorities must allow it without requiring full compliance with fire safety or accessibility provisions, provided that the building remains at least as compliant as it was before. Similarly, if a building changes its use, it will need to meet only its earthquake-prone remediation measure, not a higher requirement. These changes mean more practicable and cost-effective solutions, more time to comply, and fewer barriers for owners committed to making their buildings safer and thereby saving lives.
In summary, because of the significance and interest in this bill, I am looking forward to a full six-month select committee process. The measures in this bill will reduce the number of the current EPBs by around 55 percent and ensure that the remaining buildings require more cost-effective remediation. By prioritising highest-risk buildings and adopting more efficient approaches, remediation will be able to be completed faster than under the previous regime. Overall, then, these changes are expected to deliver around $8.2 billion worth of savings to the economy—and the community, more importantly—and will ensure that the most dangerous buildings can be strengthened to protect New Zealanders. Accordingly, and with due appreciation for the cooperation around the House already seen in relation to this legislation, I commend it to the House.