Resource management reform: Implications on the ground in Otago
In February 2025, an independent hearings panel declined consent for a McDonald’s proposed at the base of Mount Iron, near the entrance to Wānaka. This local decision received attention in the Honourable Chris Bishop’s announcement of the impending resource management reform, describing the case as a “perfect example of everything wrong” with the Resource Management Act.”
Our resource management Principal, Rosie Hill, was the only opposing lawyer involved in this case. In this article, we unpack some of the concerns expressed by the Minister and how these have influenced the upcoming reform of the Resource Management Act 1991 (RMA) relevant to our local environment.
Reduced participation rights
The current drafting of the Planning Bill will reduce participation rights within the new resource management system in a number of ways.
Under the current RMA, anyone can submit on a publicly notified application for resource consent or plan change. However, the Planning Bill will only allow ‘qualifying residents’ to provide submissions. ‘Qualifying residents’ are those that are residents, ratepayers, infrastructure providers, or an entity that has an officer or operates in the district. Other persons may be able to submit on resource consent applications, but only where the Council decides effects are more than minor. There will also be higher thresholds on where an application may be notified.
As referenced by Minister Bishop in the context of the Wānaka McDonald’s case, this change could prevent a number of interested parties from participating in such decisions. This may exclude advocacy bodies or environmental groups that have traditionally participated and contributed to decision making in resource management issues.
Judicial review will remain a possible avenue of challenge for interested parties. We expect this to be used increasingly if this change remains within the drafting of the Bill.
Reduced scope of effects
A main feature of the new system is a reduced scope of regulated effects. Under the current drafting of the Planning Bill, activities that will have a less than minor effect will not be considered, unless they contribute to a cumulative effect. Some of the effects that are out of scope in the Bill are those internal to a site, visual amenity, private views, and negative impacts on competing businesses. Landscape and amenity effects that preserve character are also excluded, except for in the context of outstanding natural landscapes and features.
Reflecting on the Minister’s comments on the Wānaka McDonald’s case, this reduced scope of effects does not appear to address the Minister’s actual criticism of the matters raised in opposition to McDonald’s (for example, public health and whether fast food outlets aligned with Wānaka’s image). It would, however, exclude general landscape and amenity concerns which were central to the case.
Plan changes and consenting
There will be a transitional period of consenting where the RMA will apply in a modified way. This transitional period will commence from one month after Royal assent of the Planning Bill and continue until the new system is ‘live’.
During this transitional period, the reduced scope of effects discussed above will be relevant for resource consents.
Amenity landscapes and private views are matters that are central to some zones within the District, including the Wakatipu Basin Rural Amenity Zone, its sub-zone (the Wakatipu Basin Lifestyle Precinct), and parts of the Rural Zone. At this stage, there is little clarity in how this transitional period will be applied in these zones. This may be an area of increased litigation where further guidance is not made available at a national or local level.
No changes have been proposed to private plan changes during this transitional period, meaning that private plan changes can continue to be lodged with Council, but are not necessarily advantaged by this reduced scope of effects. This key difference in effects regulated under these different development pathways could result in a key shift in the types of applications that are progressed by councils through the interim period.
Permitted activities and registration
The new system is also intended to reduce the range of activities that will be regulated and reduce the number of consenting pathways, with the intention of simplifying the administration of the resource management system.
A greater level of activities will be permitted, but a ‘gatekeeping’ process will be introduced to approve and monitor these. Before a permitted activity can proceed without a consent, the Council must be notified and has 10 working days to determine whether conditions and met.
This requirement could increase workloads and resourcing implications for Council planning staff, as well as arguably creating more, rather than less, regulation for landowners compared to the current RMA system.
There are many more changes proposed to the resource management system that will impact the local environment and wider Otago region. If you’re considering these implications on you, or looking ahead to the future, get in touch with our resource management team. Contact the team at enquiries@toddwalker.com or +64 (03) 441 2743.