The OCR is down, so why are home loans rising?

Source: Radio New Zealand

Westpac says it is increasing its home loans over two- to five-year terms by 30 basis points. 123rf

Wholesale rates are getting the blame for the fact that two weeks after the official cash rate was cut, one major bank has increased some of its fixed-term home loan rates.

Westpac said on Tuesday it was increasing its home loans over two- to five-year terms by 30 basis points.

That takes a two-year fix to 4.75 percent.

At the same time, it is reducing its six-month rate by 20 basis points, to 4.69 percent.

Before the latest OCR decision, wholesale markets had virtually priced in one more cut.

So when the Reserve Bank indicated it thought another cut might not be needed, wholesale rates ticked up.

Westpac said wholesale rates were 40 basis points higher than they were the day before the OCR announcement.

Infometrics chief executive Brad Olsen said there was a chance that the wholesale rate increase was a bit of an overreaction.

“You look before the Reserve Bank’s announcement in late November, you know, markets were keen on another cut. Not fully, but leaning in that direction. Then with the Reserve Bank’s nonchalant, through-the-middle view of ‘look there’s not probably a lot left in the system’, which is not too dissimilar to what they said before, markets have gone ‘oh it’s time to start thinking about the up’. It does seem like a bit of a reversal of position there. I do worry a bit that the markets have shifted pretty quickly from one to the other.”

He said people might be confused that the OCR had fallen while retail rates had risen, but there had never been a direct correlation. “We’re now at the turning point where you’re starting to see adjustments across the board.”

It would be interesting to see what other banks did, he said. “Does everyone follow because they’re facing the same sort of pressure but no one has moved yet? Or do you see a few banks go well actually maybe I have to make an adjustment but maybe not the full adjustment because then I drive a bit more of a wedge between me and other offers. It’s not clear what it means for the entire market yet.”

It had been noticeable that there were not major rate movements before the OCR, he said.

There may still be room for banks to absorb some increase on wholesale margins.

The main banks have a net interest margin of about 2.4 percent or 2.5 percent, roughly the same as they had a year ago but higher than the 2.1 percent KPMG reported them having in 2019.

Simplicity chief economist Shamubeel Eaqub said it could mean a “rubbish” Christmas for retailers if people were worried about rates rising again, and the Reserve Bank might have to cut again in February. He said other banks would probably follow. “The great mortgage war taught them not to compete on price – no changes in market share and a drop in profits.”

Commentators have been saying for some time that it could be worth considering a longer-term home loan fix because rates might be about as low as they would go.

Late last month, ANZ’s economists said it was too soon to say with confidence when rates might start increasing.

“The key point for now is that wholesale rates have stopped falling. Competition is clearly hotting up, with banks offering cash incentives to switch and that will be welcome news to borrowers,” they said.

“But when it comes to which term to select, our broad thinking remains as it was a month ago: we believe mortgage rates are likely at or near their lows, and that it is thus worth considering longer terms. With very little separating rates spanning from one to five years, borrowers with differing levels of risk appetite should be able to find a term that satisfies their own cost/certainty trade-off sensitivities.”

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‘It’s uneconomical’ – iwi provider of school lunches withdraws from programme

Source: Radio New Zealand

An example of the lunches provided by Te Rūnanga o Ngāti Rārua Supplied

An iwi provider of school lunches in the top of the South Island is withdrawing from the programme, because government funding no longer covers the costs.

Te Rūnanga o Ngāti Rārua first began delivering lunches in 2021 and delivered 12,000 meals a day to children in eight schools across Whakatū and Wairau (Nelson and Marlborough) this year.

But pouwhakahaere (chief executive) Shane Graham said the numbers no longer stacked up, in terms of the funding offered and what they could provide.

He said for the past four years, the iwi had worked to provide fresh, locally grown food, prepared by local people, for schools throughout its rohe (region).

“It’s just a simple commercial imperative, you can’t be providing a service that costs you more than what you’re getting in terms of funding.

“It’s uneconomical… We effectively become subsidisers for the government programme, which we can’t do.

This year it has supplied lunches to Victory Primary School, Auckland Point School, Maitai School and Te Kura Kaupapa Tuia Te Matangi in Nelson and Spring Creek School, Mayfield School, Whitney Street School and Redwoodtown School in Blenheim.

It also previously provided lunches for Rai Valley Area School.

The lunches were produced in the Ngāti Rārua premises in Blenheim and at the Nelson Rugby Club rooms in Nelson.

Graham said when it first went for the contract, the Ministry of Education expressed concerns that the organisation would not be able to fulfil it as they were not a commercial provider and the iwi were not successful.

“We sort of took that as a bit of a challenge, the first year of the contract offering we weren’t successful and then things turned around, we got different leadership in play and we were able to prove that we were able to do it because we have a long history of being able to provide kai and food for a lot of people.

“In this case, it has been hundreds of thousands of meals with little or no complaints. It’s been a real privilege to be part of.”

In 2023, then-Education Minister Jan Tinetti said some of the best examples of the lunch programme were those led by iwi.

“There’s one in particular that really stands out for me, and that is Victory School in Nelson and the work that the iwi have done down there to lead that programme, and the difference that it has made to young people’s attendance and engagement in that particular school,” she said at the time.

Graham said it had been a significant and empowering programme and he was very proud of the team who made it happen.

Te Rūnanga o Ngāti Rārua’s contract to provide school lunches will finish at the end of the year and around seven jobs will be affected.

Graham said transitioning those staff into other areas was a key concern and priority for the iwi.

Ngāti Rārua were now looking to consolidate and consider other opportunities. Graham said it would not rule out a return to providing school lunches in the future.

He said the iwi wished the new providers success and said they had a big legacy to live up to.

“If they can provide that, good on them. If they can’t, then I think the schools and the community will be holding them to account on that.”

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Beachgoers warned as drowning tragedies hit Auckland

Source: Radio New Zealand

Surf Life Saving is warning people to swim at their own risk when lifeguards were not on duty. RNZ / Kim Baker Wilson

There have been multiple water-related tragedies at Auckland’s west coast beaches this week.

A 26-year-old man died while swimming at Karioitahi Beach on Monday evening.

The body of a swimmer who fell into a hole at Lake Wainamu at Bethells Beach and did not resurface, also on Monday evening, was located by a police dive squad on Tuesday.

Five lifeguards from Bethells Beach Surf Lifesaving and a police eagle helicopter were unable to find the 23-year-old man on Monday.

Surf Life Saving northern region operations manager James Lea said their lifeguards responded to four separate incidents within close proximity on Monday night, including the two deaths.

One person required hospitalisation after lifeguards pulled them out of the water shortly after patrols finished for the day and gear was being packed up. Beachgoers were being told it was no longer safe to swim.

There was also a mass rescue of four people at Piha at 7:51pm.

Lea said the recent hot weather was attracting more people to beaches after lifeguard patrols closed, usually at about 7pm.

He said last night’s conditions, with low tide when rips were stronger, happened around sunset and created a “perfect storm” in terms of risk to swimmers.

“I think it’s the excitement around summer, the focus is let’s just get in the water and cool down.

“My advice is just take a pause. I’m competent in the water, but when I’m going swimming or surfing, I take a pause and look at the environment I’m going into first. Is it matching my level of competence? Am I going to be safe?”

He said with similar conditions expected tonight, they were trying to increase the number of lifeguards on duty.

“We’re just trying to pump up our resources a bit on our beaches tonight. But a lot of that is our relying on volunteers.”

He said those who decided to swim when lifeguards were not on duty did so at their own risk.

“Our lifeguards aren’t always there. If you’re not familiar with the environment, I’d strongly recommend you swim at the beach between the flags when lifeguards are on.”

He said if people spotted someone in trouble and lifeguards were not around, the best thing to do was to call the police and provide them with their exact position, to get someone there as soon as possible.

He said the death at Lake Wainamu was an unfortunate reminder that people can drown in any body of water.

“By the sounds of it, the person wasn’t confident in the water or a competent swimmer, or able to float. With Lake Wainamu, it drops very quickly. So as soon as they are out of their depth and if they’re unable to float, they will go under in a matter of seconds.”

Surf Life Saving offered sympathies to the whanau impacted by Monday’s incidents.

Karioitahi Beach Incident

Counties Manukau South Area Commander Police Inspector Jared Pirret said at about 7:10pm, police were told there were two men struggling to return to shore.

Lifeguards were able to return one of the men to shore safely.

A Police Eagle Helicopter located the second man in the water.

“Sadly, the man was unable to be revived back on shore and has died,” Inspector Pirret said.

“Our thoughts are with the man’s friends and families for their loss, as well as those responders who did their utmost to bring about a good outcome last night.”

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Waitaki District Council pushing for joint water plan after independent plan rejected

Source: Radio New Zealand

The Internal Affairs Department rejected Waitaki District’s standalone water services plan. RNZ

Waitaki District Council is again courting neighbouring councils for a joint water services plan after its bid to strike out alone was rejected by the Department of Internal Affairs.

The department turned down the council’s independent plan in October after it backed out of the Southern Waters partnership with the Central Otago, Clutha and Gore district councils.

Officials have appointed Crown facilitator Amy Adams to help the council resubmit its plan by June and carry out a full review of Waitaki’s water assets.

On Tuesday, councillors approved a plan to explore re-joining the Southern Waters group or partnering with Timaru District Council.

In a statement, a council spokesperson said the decision ended Waitaki’s efforts to keep its water services in-house and elected members would receive more information early next year to select a preferred option.

“Under any future model the community will lose nothing but instead gain the most affordable way to have clean water supplied to their homes, and drinking, waste and stormwater networks which meet high quality standards,” they said.

The decision to pursue an independent approach was not backed by Waitaki’s previous mayor Gary Kircher.

In August he told RNZ that could lead to rates rises of up to 40 percent over the next two years.

The Department of Internal Affairs ruled the in-house plan failed to meet regulatory requirements, did not include enough information about the condition of the water services and did not include enough funding to cover the district’s projected growth.

New Waitaki mayor Melanie Tavendale said the council’s mission was to deliver clean, safe water to every home, business, school and hospital in the district and to do so at the most affordable price to the ratepayer.

“We need to ensure that when people turn on the tap, they get clean water delivered through efficient pipework and when they flush the toilet, their sewage gets taken away and treated through a secure wastewater network,” she said.

That would inevitably come at some cost, Tavendale said.

“The infrastructure investment needed over the next two decades dwarfs the $50 million council has invested in its waters in the last six years. It can’t be deferred any more, it has to be done,” she said.

“Water isn’t like roads, it’s not part-paid by the government and the charges for water will not be subject to the proposed rates-cap, so finding the most affordable option is vital for everyone in the district.”

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Judge tells court martialled, dismissed soldier Jackie Te Weehi her actions were destructive

Source: Radio New Zealand

Corporal Jackie Te Weehi at her Court Martial at Whenuapai Air Base on Monday, 8 December 2025. RNZ / Kim Baker Wilson

An army corporal who swindled thousands of dollars from her comrades in the touch rugby team she managed has been told she has lost her military career and will be held in detention.

But she has avoided detention for now after instructing her lawyer to appeal against that sentence, and the judge granting bail for health reasons because of the expected eight months it would take an appeal to be heard.

Corporal Jackie Te Weehi pocketed $3422.57 of team member and NZDF funding while organising their participation in 2023 in the Australian Defence Force’s touch championships.

She also falsely told the Chief of Army players had travel insurance when they did not.

Te Weehi pleaded guilty at a court martial at Whenuapai Air Base on Monday to a representative charge spanning months of theft by a person in a special relationship.

She also admitted making a false official document.

On Tuesday, Te Weehi was told dismissal from the NZDF alone would not be enough to deter, denunciate or rehabilitate.

The judge told her that her actions were destructive of the trust that must exist between all members of the armed forces.

The Territorial Force soldier has since paid back the money she stole.

Te Weehi pleaded guilty at a Court Martial at Whenuapai Air Base on Monday. RNZ / Cole Eastham-Farrelly

The sentencing

Judge Bill Hastings told Te Weehi, 49, her abuse of trust was an aggravating factor in her offending.

“You were the team manager, you abused the trust of many comrades most of whom were a rank subordinate to yours,” he told her.

“You stole from subordinate ranks, your actions violated in particular the core military values of comradeship and integrity.”

The judge continued to say Te Weehi’s offending was pre-meditated and that this was demonstrated by the number of times she stole money.

Judge Hastings also told her she acted in self-interest and demonstrated a willingness to place her self-interests above the Defence Force.

In considering detention, Judge Hastings said he and the military members deciding her sentence had to consider denunciation, deterrence, rehabilitation and reintegration.

He said dismissal was not enough to achieve these alone and he and the panel were of the view detention was also required.

“We consider the NZDF has an obligation to one of its long-standing members to not cut you loose, but to send you back to the community with better values than when you offended,” he said.

“It also to a great extent provides for your rehabilitation and reintegration into the community.”

Judge Hastings said the sentence of both detention and dismissal held the corporal to account for the harm she had caused and deterred others from doing similar.

Credit was given to Te Weehi for her previously unblemished 27 years of service, her remorse, reparations and an early guilty plea.

Judge Hastings said he and the military members had seen letters of apology she wrote to both the court and the army men’s touch team players she took money from.

“We have read these letters and consider them to be genuine expressions of remorse.”

But the judge said there was no way Te Weehi could stay in the Defence Force.

“We consider it neither tolerable, not realistic for the NZDF to retain your services,” he told her.

“Your offending involved a fundamental breach of trust between members of the NZDF such that they should not be expected to work with you again.”

Judge Hastings told the corporal the extent of her breaches of NZDF values prevent her being retained and demonstrate unfitness to command in the future.

During her court martial, NZDF prosecutors also argued Te Weehi could not reasonably be put in a position of trust again.

Judge Hastings had to decide whether to grant the corporal bail or send her to detention until her appeal was heard.

He said he was granting bail to preserve Te Weehi’s appeal rights and not giving it would make those rights redundant given the time it would take.

She must not travel overseas, must surrender any travel documents and not apply for new ones, and tell Military Police if she moves.

The offending

Defence Force prosecutors Lieutenant Letitia Smith and Sub Lieutenant Angus Graham laid out the case at Whenuapai Air Base on Monday.

It was July 2023 when the New Zealand Army Men’s Touch Team was invited to play in the Australian Defence Force Touch Championship in Australia.

Te Weehi, an acting sergeant at the time, was manager of the team.

She overcharged team members and asked for money that wasn’t used, including asking for donations for the coach’s emergency bereavement flight back to New Zealand.

She took money at various points.

Te Weehi sent a budget to team members on 1 August 2023 saying they needed to pay $635 to cover the trip – $531 for flights, $80 for uniforms and $24 for other costs.

Days later she was told that sponsorships meant flight costs had dropped to $400.

She then told team members they needed to pay $535 in total, when it should have been $504.

Between 27 July and 23 August, team members put money into Te Weehi’s personal bank account.

In all, she got $8726 that was supposed for be for tournament expenses.

Between 15 and 23 August Te Weehi transferred $5600 to another service person who booked flights and then paid $1200 for uniforms.

In total she spent $7200 on the team’s needs.

But she held onto $940 from overcharging each player, asking for money for expenses that were not used and not repaying two players who overpaid.

Another player wanted to take his civilian daughter to the tournament and was told she would need to pay full price for the flight.

But Te Weehi knowingly put her on a seat subsidised by the army and held onto the extra $586, which she used for personal expenses.

Then, she got $3000 of sponsorships from the Army Logistics Regiment that was supposed to be given to team members equally as a reimbursement.

Te Weehi, while distributing the money, told players there were hidden costs and insurance fees when there weren’t, and held onto $939.67 and used it personally.

Money from a manager grant for extra expenses was also paid into her bank account for the likes of sports drinks and washing powder, but was not used for those.

On 18 October she asked players for more contributions, $490 for the team and miscellaneous costs.

She only put $294.70 of it toward those, and held onto the rest.

Then, when the team coach had to return to New Zealand urgently during the tournament for a family bereavement, the flight was charged to an NZDF credit card.

Te Weehi raised $189.60 from donations from four team members but gave none of the money to the coach or the Defence Force.

On 25 October she offered to order new team t-shirts for the team with eight players together handing over $372, but the shirts were never ordered.

On the second charge of making a false official document, she made a document addressed to the Chief of Army saying she had arranged travel insurance for the team.

A later investigation by Military Police found Te Weehi had never got insurance.

“Corporal Te Weehi blatantly lied, this was not spur of the moment offending,” Lt Smith said of the second charge at the court martial.

She also told the judge Te Weehi was not acting in any form other than self interest.

Smith said Te Weehi had “a clear unwillingness” to comply with the ethos and values of the NZDF.

Te Weehi’s defence

When interviewed under caution in October last year, Te Weehi asked to terminate the interview and exercise her right to refrain from making further statements.

At the court martial, Te Weehi’s lawyer, David Pawson, told the military panel it was “absolutely warranted” to have her dismissed.

“No problem with that at all,” he said.

But he argued she should not face detention, and that dismissal was a higher punishment than detention.

“She immediately pleaded guilty, she is remorseful, she’s paid back the donations and she’s written a letter of remorse,” he said.

He also urged the military panel to consider the effect of Te Weehi’s name being published by the media.

“I invite you to consider about being empathetic too, I’m not saying be soft but I’m not saying let’s be harsh either,” he said.

“Because at the end of the day Corporal Te Weehi is toward the end of her long and distinguished service.”

“We’ve all made mistakes,” he told the panel before it considered its sentence.

No victims gave victim impact statements.

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Akaroa King Salmon products recalled over listeria risk

Source: Radio New Zealand

The recalled products. Supplied

Some Akaroa King Salmon products are being recalled because of the possible presence of listeria.

Food Safety NZ says the products affected are 100g packets of Mānuka Cold Smoked Slices and 500g packets of Mānuka Cold Smoked Trim.

Both had a use-by date of 29 December, with the batch number 46780.

They were sold at the Akaroa Salmon Wigram Factory Shop, Beckenham Butchery in Christchurch and Taste Nature in Dunedin.

Food Safety NZ deputy director-general Vincent Arbuckle said these products should be returned to where they were bought for a refund, or thrown out.

“Listeria differs to other harmful bacteria in that it can grow at refrigerator temperatures, so you have to be very careful about the foods you eat, or provide to others, if you or they are in a vulnerable group,” Arbuckle said.

“It is particularly dangerous during pregnancy because it can cause miscarriage, premature labour or stillbirth, and infection in the new-born baby.”

He said the products were identified through routine testing and there had been no reports of illness.

“As is our usual practice, New Zealand Food Safety will work with Ahi Mokopuna Limited Partnership, to understand how the contamination occurred and prevent its recurrence,” said Arbuckle.

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‘We need to prepare better’, says Auckland FC coach after penalty misses

Source: Radio New Zealand

Wellington Phoenix’s Josh Oluwayemi saves a penalty. Shane Wenzlick / Photosport.nz

It took Auckland FC 35 games in the A-League to be awarded a kick from the penalty spot. When the time came they failed to convert – twice.

Coach Steve Corica hoped that did not happen again.

Two penalties in the second half of Saturday’s derby game were saved by Wellington Phoenix custodian Josh Oluwayemi.

Oluwayemi first denied Sam Cosgrove just after the hour mark and then stopped Francis de Vries eight minutes later before the All White converted off the rebound.

The misses were not costly, with Auckland winning 3-1 to keep their unbeaten run in the New Zealand derby going, but Corica knew there could be another game this season when a successful penalty could turn a game to their advantage.

“It’s not great to miss pens like that… you would hope to score the pens when they come,” Corica said.

Cosgrove, who is the side’s current leading scorer with five goals, and last season’s leading goal-scorer Guillermo May were among those Auckland would turn to should a penalty kick be awarded.

May, who started off the bench in the round seven fixture, was not on the field yet when the penalties were blown and he suggested the team “were not prepared” when they faced their first penalty.

“Some games we deserved some more [penalties] these two came together and we need to prepare better,” May said.

Corica was not convinced they needed to step up the penalty taking at practice.

“They’ve all taken them in different circumstances in penalty shoot-outs but there is normally one or two who would take them on the day,” Corica said.

“It’s all a confidence thing picking the right spot and scoring, unfortunately Sam missed his one but that happens sometimes but you don’t want it to happen too often.”

Going into round eight of the last A-League season, Auckland had won the six games they had played and were at the top of the points ladder.

This season the record looks a bit different. Four wins, two draws and a loss and sitting in third.

However Auckland have netted 10 goals so far, the same number they had at this stage in their inaugural season.

“This is more like a normal season,” Corica said. “Six wins in a row I don’t think I’ve ever done it [before last season] while I’ve been coaching.”

Corica said that the results so far were “a good sign”.

“[We’re] hard to beat.”

Friday’s game against Central Coast Mariners in Gosford marked the start of three away games to see out the calendar year which could be a turning point for the season.

“it’s a difficult period for us being away from home, I actually quite like it because if you go by last season we picked up a lot of points away from home so if we play our cards right and take our chances we can pick teams off and hopefully do what we did last year and pick up a lot of points along the way.”

The Mariners have also had some problems finding the back of the net in the last round.

“I watched the game against Sydney last week they hit the crossbar four times and they came away with a loss.

“They’re a good team, especially at home, they’ve got good young players aggressive as well defensively.

“I said to the boys we actually really need to be switched on the away games is going to be a big telling point of where we’re going to finish at the end of the season if we can start picking up points away from home.”

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Threatened gulls back on rooftops in Tūrangi town centre

Source: Radio New Zealand

Threatened black-billed gulls nest on the rooftops in Tūrangi town centre. Supplied / DOC

Black-billed gulls are once again nesting on the rooftops in Tūrangi town centre.

A large colony of 150 of the threatened birds had nested there in 2023 – leaving a generous layer of guano on cars, rooftops and around businesses.

This year, the Department of Conservation said only 15 had decided to make the town centre their temporary home since November.

Ranger Sarah Tunnicliffe said businesses have had streamers and sprinklers on the rooftops to scare the birds away, so only a few determined stragglers had returned.

However, she encouraged the public not to feed them – either actively or by leaving food unattended – to continue to deter them away.

“Feeding them just encourages them to continue using the town centre, where they cause problems by pooing everywhere and squawking a lot.

“People might not be aware, but even small actions like not feeding birds count as naturing, and help to protect the nature we love.”

Tunnicliffe said the Department of Conservation was hoping for a less eventful season.

“We expect to see hatching any time now, and fledging should start toward the end of January.

“Hopefully none of the hatched chicks wander into the post-shop this time! But if you do come across one of the little fuzzballs wandering the town centre, please contact us on 0800 DOC HOT.”

While she said the community would be pleased to see only a small number of black-billed gulls in Tūrangi, the Department of Conservation was not sure where the rest of the population had gone.

“If you do come across black-billed gulls nesting elsewhere around Taupō, please contact us at turangi@doc.govt.nz.”

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Man, 26, drowns at Karioitahi beach, Auckland

Source: Radio New Zealand

Karioitahi Beach. Supplied / ATEED

A 26-year-old man has died after drowning at a southwest Auckland beach on Monday night.

Counties Manukau south area commander police inspector Jared Pirret said police were contacted about two men struggling to return to shore at Karioitahi Beach just after 7pm.

Lifeguards were able to return one of the men to shore safely.

A Police Eagle Helicopter located the second man in the water, but he was unable to be revived once back on shore.

Police will refer the 26-year-old man’s death to the coroner.

Surf Life Saving said their lifeguards responded to multiple critical incidents on Auckland’s west coast on Monday.

It said it was increasing staffing on Tuesday night with more risky conditions expected.

Surf Life Saving Kariaotahi posted on social media that local iwi had placed a rāhui in front of the surf life saving clubhouse south to the Waikato River mouth for the next seven days. It includes a restriction on fishing, swimming and recreational activities.

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Coalition reveals Resource Management Act replacement,but will it stand the test of time?

Source: Radio New Zealand

David Seymour, Chris Bishop and Christopher Luxon at the announcement of New Zealand’s new planning system. RNZ / Mark Papalii

The coalition’s RMA reforms seem far more likely to stand the test of time than what Labour passed shortly before being voted out.

Four government ministers fronted to announce the Resource Management Act replacements to more than 100 reporters, stakeholders commentators and officials at the Beehive on Tuesday afternoon.

They include a Planning Bill and a Natural Environment Bill the government will send to select committee next week, with the aim of passing by the end of next year, presumably before the election.

Given the consultation processes needed, the proximity to that election may echo Labour’s effort in 2023 which was quickly scrapped by the incoming coalition.

But indications from the opposition are that the merry-go-round of RMA reform will finally come to an end.

Labour won’t repeal – Hipkins

Labour leader Chris Hipkins. RNZ / Mark Papalii

Labour leader Chris Hipkins said the party was still working through the detail of the roughly 750 pages of legislation, particularly the regulatory relief aspects.

“That is the bit that we’re going to want to get into the detail of, because that could be very, very difficult for future governments, for future lawmaking, in the public interest,” he said.

“If you have to be compensating for every sort of infringement on somebody’s unfettered right to do whatever they want with their property, that has potentially far-reaching implications.”

But he indicated Labour would not return the coalition’s favour and again repeal and replace the legislation – opting instead to make changes.

“I think the repeal and replace cycle needs to end. That doesn’t mean that there won’t be amendments but the old idea of constantly going back and starting all over again has to stop.

Green Party co-leader Marama Davidson. RNZ / Samuel Rillstone

“From what I can see there’s a heck of a lot of similarities between what they’re proposing now, and the law that they repealed.”

The Green Party said whatever went through had to protect the environment, community voice, democratic processes and the Treaty.

“This government has shown time and time again that they will pass laws that further erode our environment and our living systems, our habitats and species,” co-leader Marama Davidson said.

RNZ has sought comment from Te Pāti Māori.

Certainty amid ‘tsunami of change’ – councils

Local Government New Zealand was happy to have certainty, saying there would be buy-in from councils and communities alike.

Vice President Rehette Stoltz, who is also Gisborne’s mayor. RNZ / Angus Dreaver

Vice President Rehette Stoltz, who is also Gisborne’s mayor, said she saw an increased workload ahead, it would also be an opportunity for more engagement with central government which had signalled it was open to.

“I think local government is seeing a tsunami of change, but we’re ready for that. We want to serve our communities as best as possible. Yes, there will be more work on local mayors. There will be more work also with local communities, because we will have to lean in, and our communities have to lean in to let us know what’s important to them at that local level.”

LGNZ’s regional sector chair Deon Swiggs, who is also chair of Environment Canterbury, said it was an opportunity to think differently about resource management.

He said the coalition’s version was “straight out” simpler than Labour’s, and he hoped the government would use the expertise of regional councils.

“Regional councils have some really, really good people who know this work [like the] back of their hand. And we do have elected members who have been elected to regional councils who were elected because they wanted to be in the resource management space,” he said.

“How we harness the skillsets of those people into this transition framework as well is going to be critical. So we want to be making sure that we have conversations with the government so that we don’t lose that technical skill, that institutional knowledge.”

Local Government New Zealand’s regional sector chair Deon Swiggs. RNZ / Nate McKinnon

Farmers, property professionals, Taxpayers Union back ‘ambitious’ reforms

Federated Farmers said the Resource Management Act had been the single biggest handbrake on growing agricultural productivity and rural economies.

Its resource management spokesperson Mark Hooper said it made sense to use certified Farm Plans instead of needing a resource consent.

“Farm Plans can achieve much of the same environmental outcomes as a resource consent, without the need to fork out tens of thousands of dollars on expensive planners and lawyers.”

However, Hooper said the increase in fines and restrictions on the use of insurance to cover a breach did not strike the balance in the right direction.

“This needs to have more nuance so that when harm is done accidentally, for example an effluent system fails due to poor engineering, this is recognised in the regime.”

The New Zealand Planning Institute said the timeframes for transition to the new system were “ambitious”, but supported the legislation.

“There are plenty of positives in the new system, with a refocus on the value planners bring to society,” NZPI Board Chair Andrea Harris said.

“We’ve been advocating for strategic spatial planning, which considers the long-term needs of society and coordinates the provision of infrastructure and growth within constraints.”

The Taxpayers’ Union said scrapping the Resource Management Act would be “the most meaningful tax relief offered by this government or any government in decades.”

Environmental groups rail against ‘regulatory relief’ effects

Greenpeace said companies being able to claim compensation was an “outrageous” idea, and it “flips the entire principle that polluters should pay on its head.”

Environmental Defence Society chair Gary Taylor. Supplied

Spokesperson Gen Toop said New Zealanders should not be expected to pay compensation to companies causing environmental harm.

“In practice, this means that if regions like Gisborne want stronger rules to stop forestry slash destroying homes and rivers, ratepayers would likely be forced to pay offshore forestry companies ‘compensation’. It’s absurd.”

The Environmental Defence Society also expressed concern at the regulatory relief proposal.

“That will have a chilling effect on councils protecting things. If they protect something, then arguably they have to pay the landowner for that, which is really bizarre and I think is a construct that comes out of right wing ideology,” EDS chair Gary Taylor said.

“Councils will have rate caps, so they won’t be able to afford to pay, so they’ll have weaker controls.”

Forest and Bird general counsel Erika Toleman said putting greater weight on private property rights would ignore harms like destruction of biodiversity on private land, erosion of soils and ecosystem services, and cumulative degradation of rivers and landscapes.

“Big environmental issues, from deforestation to water pollution, happen within property boundaries. Excluding these effects is a recipe for decline,” she said.

Toleman said introducing compensation would make councils fear liability for protecting nature.

Ministers sell the policy

Prime Minister Christopher Luxon. RNZ / Mark Papalii

Announcing the new regime, Prime Minister Christopher Luxon said it would be a “more permissive, consistent and predictable system, that unlocks investment, reduces delays and gives businesses confidence to plan and to grow”.

He said officials estimated up to 46 percent of consenting and permit applications required under the RMA could be removed – between 15,000 and 22,000 consents that would no longer be needed based on 2023/24 figures.

Luxon was flanked by Deputy Prime Minister David Seymour, RMA Reform Minister Chris Bishop and Associate RMA Reform Minister Simon Court.

Seymour said it was “an historic and momentous day” because it marked a shift to the principle that “if you own a property and you’re not harming anyone else, you can”.

“We have the best piece of land on the planet but we’ve made it too hard to build an affordable life here, but worst of all we’ve done it to ourselves with planning laws that allowed every Tom, Dick and Henare to say no when people had an idea to make life better.

“It seems that for every person in this country who think they can, there’s a ‘can’t’, who’s empowered by the Resource Management Act to get in the way.”

Bishop said it would mean “less paperwork, less cost, faster and easier progress for those who want to do basic things like putting a deck on a house, building a fence on a farm, or constructing townhouses or even a wind farm”.

“The size of the prize is substantial. The economic opportunities we unlock with these reforms are unbelievably large,” he said.

He said economic growth would begin as soon as the system was set up and would build up over time, unlocking billions in economic value.

“Once this is implemented new Zealanders will be able to go to one website, look at one map, and figure out what they can and can’t do with their property – and in time they may be able to obtain simple consents online within a matter of days by harnessing the power of AI.”

He said councils would no longer be involved in gauging demand or financial viability of projects, retail distribution effects, the negative effects of development on competition.

“Which way your front door faces is an important decision, but guess what, it’s an important decision for you and your family, not for a local council bureaucrat to decide for you.”

Court said the major shift was towards a system with property rights at its centre, “after all, property rights are a core cornerstone of a liberal democracy”.

“Providing for regulatory relief is a critical way to right-size regulation by forcing councils to confront the real cost of these restrictions on private property that for too long have been costless to that council officer holding the highlighter, colouring in people’s property.

“It’s also a way to ensure that when these controls are justified, the property owner can access reasonable relief.”

He said the planning tribunal set to adjudicate when there was disagreement, will hold councils’ feet to the fire.

Prime Minister Christopher Luxon says the system will be a “more permissive, consistent and predictable system”. RNZ / Mark Papalii

Bishop acknowledged the new regime had some similarities to Labour’s approach, but said he would “stand absolutely behind the decision” to repeal that law in favour of his own version.

“We started again for a reason and I think we’ve ended up with a with a good outcome. Yeah, I absolutely think that was the right thing to do.”

The third coalition partner New Zealand First did not have a speaker at the announcement, but deputy leader Shane Jones said Māori involvement in the rollout would be key.

“Let’s see how the bill comes out of the Select Committee. But, you know, unless we have development in our Māori rural communities, they’re going to be in strugglers gully,” he said.

“But there’ll be people who disagree, because obviously the debate is ongoing as to how much veto power should Ngāi Tahu, for example, have over the development of the South Island.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand