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What compensation, if any, is available under the Public Works Act 1981 or otherwise to a landowner for loss of value, loss of use, or costs incurred as a result of a designation that is later withdrawn, lapses, or is not given effect to?

Answered Question 37305 (2026)
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Asked by

Tangi Utikere

Member for Palmerston North · Labour Party

Question

  • What compensation, if any, is available under the Public Works Act 1981 or otherwise to a landowner for loss of value, loss of use, or costs incurred as a result of a designation that is later withdrawn, lapses, or is not given effect to?

Answered by

Mike Butterick

Member for Wairarapa · National Party · Minister for Land Information

Answer

Land is designated under the Resource Management Act 1991, not the Public Works Act 1981 (PWA). No compensation is available under the PWA for loss of value, loss of use, or costs incurred as a result of a designation that is later withdrawn, lapses, or is not given effect to if there have not been any corresponding acquisition actions. However, where an acquisition of land under the PWA is abandoned, a landowner is entitled to receive compensation under the PWA that will fairly reimburse them for the actual and reasonable costs and expenses incurred as a direct result of that public work requirement. This compensation applies whether or not the land has been designated.