The Road Ahead: Key Changes in the Public Works Act

The PWA is an essential tool that enables acquiring authorities to acquire land for new infrastructure, while ensuring landowners are fairly compensated for any land acquired.

The first reform anticipates the following outcomes:

• Granting the New Zealand Transport Agency the authority to enter into acquisition agreements with landowners using the Public Works Act. For compulsory acquisitions by the Crown, the Minister for Land Information will continue to be in charge.
• Enabling government agencies to work together when acquiring land for connected public projects. To streamline the process, agencies will be able to coordinate land acquisition as needed rather than having to do it independently.
• Enabling land acquisition by the government and local authorities when they need to relocate existing infrastructure (such as pipes or powerlines) that is obstructing new public works projects.
• Refining the role of the Environment Court by making it clear what factors the Environment Court can consider when assessing objections to land purchases for public works projects while providing a fresh emphasis on private property rights and eliminating any overlap with the Resource Management Act.
• Requiring mediation for compensation disputes which will avoid drawn-out court proceedings, require parties to attempt to settle compensation disputes through mediation or alternative dispute resolution before bringing the matter before the Land Valuation Tribunal.
• Allowing Transpower to acquire land by agreement through the PWA, bypassing standard processes and expediting the energy infrastructure construction process.

The relationship between local government and private landowners has always been a delicate balance when it comes to public works projects. The reforms seek to redefine this balance, addressing both the needs of local government in delivering essential public infrastructure and the rights of private landowners whose property may be impacted. As the landscape of public works evolves, understanding how these key amendments affect both sides is crucial for fostering cooperation and minimising conflict.

What to expect in 2025

While this reform is ongoing and expected to be finished by the beginning of 2026, Minister Chris Penk recently announced that some urgent action would be taken. In order to accelerate the purchase of land required for public projects included in Schedule 2 of the Fast-track Approvals Act and the Roads of National Significance specified in the Government Policy Statement on Land Transport 2024, the Government will be revising the Act in the upcoming months.

The changes this year will see:

• Payments of up to 15 percent of your land’s value, with a maximum payment of $150,000 if you sell your land before the \ Notice of Intention is issued.
• If your land is acquired under the accelerated process, you will receive a five percent recognition payment, with a maximum payment of $92,000.
• Any objects to an acquisition will go directly to the relevant decision-maker, either the Minister for Land Information or the local authority, for faster resolution.

What it means for landowners?

The acquisition process will offer more money as an incentive for early settlement. Objections may be able to be dealt with faster through a different objection process.

Where to from here?

Legislation implementing these changes is anticipated to be introduced to Parliament in the middle of 2025, and the public will have an opportunity to provide feedback during the select committee stage so keep an eye out for this update.

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.