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Cultivating the Future: what the National Policy Statement on Highly Productive Land means for rural landowners
Rural landowners often consider developing or subdividing their land. This article explores one key aspect and how it might impact these plans.
What is the National Policy Statement for Highly Productive Land (NPS-HPL)?
The National Policy Statement for Highly Productive Land (NPS-HPL) came into effect in 2022 with the objective of protecting highly productive land for use in land-based primary production, both now and for future generations. The Policy Statement seeks to achieve this by mapping and identifying highly productive land in policy statements and plans, restricting urban rezoning, avoiding rezoning and subdivision and protection from inappropriate use and development.
The NPS-HPL underwent a few changes in August 2024 with regard to specific infrastructure, intense indoor primary production, and greenhouse operations. A clear consent pathway that is intended to prevent such activities from taking place on highly productive land has now been established.
What is Highly Productive Land?
New Zealand has adopted the Land Use Capability (LUC) system which categorises land into eight classes. LUC 1 land is considered the most fertile and versatile, making it ideal for food production whereas LUC 8 land is not suitable for to agricultural, horticultural or forestry use due to severe limitations of climate, low fertility, and erosion hazard.
Highly productive land is land that has been mapped and has been included in an operative regional policy statement. If mapping has not yet taken place, it is land (that will eventually be mapped) that:
- is in a general rural zone or rural production zone, and
- is predominantly LUC 1, 2 or 3 land, but is not:
- identified for future urban development; or
- subject to a Council initiated, or an adopted, notified plan change to rezone it from general rural or rural production to urban or rural lifestyle.
The effects on land development
The NPS-HPL has had an immediate implication for planning processes, other than in relation to land that has already been allocated for future urban development.
While the NPS-HPL works to preserve highly productive land, this objective is balanced against the competing needs to increase the supply of housing and the capacity for development, in accordance with the Government’s National Policy Statement on Urban Development 2020. In some cases, territorial authorities may allow urban rezoning of highly productive land to meet housing demands where there are no other reasonably practicable and feasible options, and the benefits of rezoning outweigh the costs of losing the highly productive land.
Other uses such as infrastructure, mining or aggregate extraction may also be allowed on highly productive land, if there is a functional or operational need. Nonetheless, the NPS-HPL is very restrictive, with very few exceptions, when it comes to alternate uses.
What does this mean for landowners?
For rural landowners considering applying for a subdivision or land use consent or requesting a rezoning plan change, the NPS-HPL will be relevant.
Subdivision
Territorial authorities must avoid subdividing highly productive land unless an applicant shows that the proposed lots will retain the land’s overall productive capacity, or the subdivision is on specified Māori land, or the subdivision is for specified infrastructure or defence facilities and there is a clear functional need for it.
Use and Development
The use and development of highly productive land is considered inappropriate unless it is for:
- supporting activities on the land;
- intensive indoor primary production;
- addressing public health and safety risks;
- a matter of national importance;
- protecting indigenous biodiversity;
- improving water quality;
- a designation;
- providing public access; or
- specific infrastructure or extraction.
Whether it be a subdivision or use or development, territorial authorities must take steps to avoid or mitigate any potential cumulative loss of the availability and productive capacity of highly productive land in their district and any actual or potential reverse sensitivity effects on nearby land-based primary production activities.
Exemption
Territorial authorities can only allow the subdivision, use or development of highly productive land for activities not otherwise allowed if:
- permanent or long-term constraints make land-based primary production economically unviable for at least 30 years;
- significant loss of productive capacity is avoided;
- the fragmentation of large and geographically cohesive areas of highly productive land is avoided;
- potential reverse sensitivity effects are avoided; and
- the benefits outweigh the costs associated with losing the land.
In this instance, a proposed activity may proceed however, it is clear that there are a number of considerations for resource consent to be granted.
Rezoning
Rezoning operates on a similar premise: unless the property is subject to permanent or long-term constraints, this is inappropriate and territorial authorities are expected to avoid rezoning. The above same exemption is used for rezoning land.
If you are considering any of the above activities in a rural area, please get in touch to find out how the NPS-HPL might affect you.
This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.