Government to override restrictive council housing plans

Wednesday, 18 June 2025

Housing Minister Chris Bishop has announced Cabinet is introducing a new regulation to allow central government to override local councils’ district plans if they are deemed to constrain economic development.

The new power, to be added to the Resource Management Act (RMA) via an amendment bill already before Parliament, would enable ministers to modify or remove planning provisions that limit growth, development capacity, or employment opportunities.

Bishop described the move as “an interim measure,” stressing that ministers must still consult with councils and consider whether they were simply following national planning directives.

“We know that this is a significant step. But the RMA’s devolution of ultimate power to local authorities just has not worked,” Bishop said. “If local councillors don’t have the courage to make the tough decisions, we will do it for them.”

The change signals a shift in the balance of power between central and local government, a relationship that has been tense in recent years. During a local government conference last year, Prime Minister Christoper Luxon chastised local government for wasting money. Bishop has previously criticised councils for hindering growth in their regions.

“Let me be absolutely clear: the days of letting councils decide that growth shouldn’t happen at all are over,” he said.