Public Works Amendment Bill passes first reading in Parliament

Bill adds incentive payments, raises payments for home and land losses

Public Works Amendment Bill passes first reading in Parliament

Chris Penk, land information minister, has highlighted the Public Works Amendment Bill – the legislation intending to overhaul the Public Works Act 1981 – which has recently passed its first reading in Parliament. 

According to Penk, the amendment bill seeks to: 

  • Ensure a fairer and faster system for securing land for public infrastructure projects 
  • Hasten infrastructure delivery 
  • Safeguard the rights of landowners 
  • Increase compensation 
  • Improve the processes for disputes 
  • Help landowners and agencies navigate the system more easily 

“The Government is working hard to fix the basics and build a better future for New Zealand, and this modernised Public Works Act will play an important part in unleashing an infrastructure boom that creates jobs and grows the economy,” he said in a news release from the government. 

Penk emphasised the lack of changes to the Public Works Act over the past half-century. 

He pointed out that a targeted review in 2024 revealed the lack of clarity and common sense in multiple areas of the legislation. He explained that these deficiencies in the laws relating to land acquisition have led to complex regulations and inefficient processes. 

Penk stressed that securing the land required for development can take years. He added that this delay, in turn, slows down the construction of new schools, hospitals, roads, water, and power facilities, which may enhance New Zealanders’ lives and promote a productive economy. 

Amendments

The government’s news release noted that the bill aims to adjust home-loss and land-loss payments, on top of land value and incentive payments, to accommodate disruptions due to acquisitions. Specifically: 

  • Home-loss base payments will increase to $50,000 from $35,000 
  • Home-loss payments will extend to a single property’s multiple homes 
  • Land-loss payments will rise to $350–$35,000 from $250–$25,000 

According to the government, the bill’s other key changes include: 

  • incentive payments amounting to 10 percent of the land value – with a $100,000 maximum – for landowners agreeing to sell prior to the issuance of a notice of intention 
  • simplified acquisition processes, which will help Transpower skip the standard procedure to acquire land directly, as well as allow government agencies and local authorities to collaborate to acquire land for associated public projects 
  • clarifying factors the Environment Court can weigh when reviewing land acquisition objections, with an emphasis on individual property rights and less overlap with the Resource Management Act 1991 
  • emergency provisions in support of disaster recovery, which will enable land acquisitions after a state of emergency to restore infrastructure and help the community recover 
  • fairer compensation by addressing a legal discrepancy undervaluing Māori freehold land 
  • better protections for Māori land 

“Specific provisions to speed up the delivery of critical infrastructure projects passed in August,” Penk said in the news release. “The additional amendments that passed first reading today will make sure the wider system is also fit-for-purpose into the future.” 

Regarding the following steps, he expressed eagerness to hear public feedback on the bill as the Transport and Infrastructure Select Committee considers it.