Government gets new powers to overrule councils

Wednesday, 18 June 2025

Housing Minister Christopher Bishop will get new powers to intervene in local council plans, allowing him to modify or change plans that work against economic growth, development or employment.

Bishop announced the new measure this morning at a speech to the Wellington Chamber of Commerce.

Today the Government is releasing a new housing discussion document as well, which is up for consultation.

But it will be the new powers that Bishop announced in his speech on Wednesday morning which will be the biggest surprise to many.

“Cabinet has agreed to insert a new regulation making power into the RMA, allowing us to modify or remove provisions in local council plans if they negatively impact economic growth, development capacity, or employment,” Bishop said.

“Prior to exercising this power, the minister must carry out an investigation into the provision in question, consider its consistency with existing national direction under the RMA, and engage with the local authority.”

The new rules will be interim measures until the replacement legislation for the Resource Management Act is passed in a couple of years. It will be attached as an amendment to the current Resource Management Act using the same method that the Government announced on Tuesday it would use to remove heritage protection from the Gordon Wilson Flats.

“We know that this is a significant step. But the RMA’s devolution of ultimate power to local authorities just has not worked.”

Bishop used the speech to mount an attack on some councils and planning departments that he believed were anti-growth.

“New Zealanders elected us with a mandate to deliver economic growth and rebuild our economy, and that’s exactly what this new power will help do.

“We aren’t willing to let a single line in a district plan hold back millions or billions in economic potential. If local councillors don’t have the courage to make the tough decisions, we will do it for them.”

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

Lower Hutt mayor Campbell Barry feared the move would become a larger fight between local and central government, with aggrieved communities and local MPs in the middle.

Barry did not have any concerns with the minister stepping in locally, saying Lower Hutt had seen a boom in housing consents after introducing rules for higher density in 2019, but believed a more sustainable approach was needed.

“Our biggest issue to getting houses built now is not the planning rules but the cost of infrastructure.”

Rather than threatening intervention, the Government should incentivise behaviours instead, referencing ACT's election campaign policy to return 50% of the GST revenue from new housing back to councils.

Barry disagreed with Bishop’s comments that councils did not have the courage to make tough decisions and said the minister should not underestimate the impact the evolving law of government reform had had on councils.

“In the past 10 years we have seen councils really look to try and respond to the housing crisis within really difficult planning environment.”

Wellington mayor Tory Whanau agreed councils should be focused on encouraging the building of affordable housing but said central government must exercise extreme caution in wielding its power to restrict councils’ independence and decision-making.

“Its continued abandonment of localism undermines our democracy.”

The council was leading the way on that with the passing of the District Plan and the continued investment in social housing, she said.

Porirua mayor Anita Baker welcomed any intervention from the Government, saying the council wanted growth but lacked the money for infrastructure.

With the council completing its district plan, she wanted to see the process sped up.

“There are rules and regulations in the way of us making these decisions so this is quite big.”