Source: New Zealand Government
The final stage of reforms to the Public Works Act will introduce bigger and broader land payments, improved landowner engagement and new measures to support disaster recovery, Land Information Minister Chris Penk has announced.
“The Government has been working through an overhaul of the Public Works Act (PWA) to bring it into the 21st century after an independent review found it lacked clarity and commonsense. Today, I am proud to confirm that review is complete” Mr Penk says.
“If we want to grow the economy, boost productivity and make New Zealand a better place to live we must fix our pipes, increase the capacity of our schools and hospitals, and build more homes, roads and renewable energy sources.
“I want to thank the panel members for their expert advice in making the Act more efficient, effective, and transparent. This will help end decades of difficulties which have seen central and local governments struggle to secure land for development.
“Already announced changes include a dedicated carve-out in the law to provide incentive payments and a streamlined objections process for critical infrastructure. Now, this final set of reforms will modernise the wider system – protecting landowners’ rights while ensuring the Crown and local authorities can deliver for New Zealanders.”
The final tranche will:
Introduce incentive payments: To encourage early agreements on land acquisition, landowners who voluntarily sell their property before a Notice of Intention is issued will now be eligible for an incentive payment of 10 percent of the land value, up to a maximum of $100,000.
Update home-loss and land-loss payments: To recognise the disruption caused by acquisition, additional payments will be made alongside the land value and any incentive payments:
o The home-loss base payment will increase from $35,000 to $50,000.
o The land-loss payment amount will increase from $250-$25,000 to $350-$35,000.
o Home-loss payments will now extend to multiple homes on a property, such as farms held in trust with multiple owners residing on the land.
Land Acquisition Process Reforms: The process for acquiring land will be streamlined by replacing the initial statutory notice with a more structured engagement process. Before issuing a Notice of Intention for compulsory acquisition:
o Landowners must receive comprehensive information on the acquisition, their rights, entitlements, and an invitation to sell.
o The Minister or local authority must negotiate with landowners in good faith for at least three months (or six months for Māori freehold land).
Emergency Provisions: New measures will allow land acquisition following a declared state of emergency to support infrastructure restoration and community recovery, when activated by Order in Council.
“Cyclone Gabrielle showed in the starkest light the immense challenges communities face after a natural disaster. When roads, railway lines, water and power stations are wiped out and homes left uninhabitable, we must act swiftly and decisively. This new emergency provision empowers us to reconnect those in need,” Mr Penk says.
The Public Works Act Amendment Bill will be introduced to Parliament in mid-2025, with the public invited to provide feedback through the select committee process.
Note to editors:
Information on previously announced Public Works Act changes can be found on the Beehive website:
