This page explains the development of the National Policy Statement on Urban Development Capacity 2016 and links to the reports which informed the development.
Link to the NPS-UDC
Process for developing the NPS-UDC
In August 2015, the Minister for the Environment announced his intention to consult on the development of an urban national policy statement in A way forward for national direction.
The National Policy Statement on Urban Development Capacity 2016 (NPS-UDC) was developed using the alternative submission process, run by the Ministry for the Environment and the Ministry for Business, Innovation and Employment, to the Board of Inquiry process under the Resource Management Act. This approach required two phases of consultation in the development of a proposed national policy statement. The first phase held during December 2015 to February 2016 was a targeted consultation that sought and considered comments from selected stakeholders. The second phase was a public consultation on the Proposed NPS-UDC during June and July 2016.
Initial consultation on a national policy statement
Initial consultation began with selected stakeholders, including all local authorities and iwi authorities in early December 2015.
The questions asked were:
- Is your area experiencing high levels of population growth and challenges in planning for this growth?
- How could a national policy statement and supporting guidance help to address these issues?
- What could a national policy statement and supporting guidance contain?
As required under the RMA, a summary of the responses to the Phase 1 consultation was prepared.
Forty-seven submissions were received and most supported an urban development national policy statement. Following feedback from the initial consultation, the Minister for the Environment directed the Ministry for the Environment and Ministry of Business, Innovation and Employment to develop a proposed national policy.
Public consultation on the Proposed NPS-UDC
Public consultation on the Proposed NPS-UDC was held between 3 June and 15 July 2016. The submissions responded to a consultation document which presented the Proposed NPS-UDC and they made an important contribution to the development of the NPS-UDC.
The Ministries considered the responses and compiled a report summarising the 140 submissions received during the consultation period.
Individual submissions on the proposed National Policy Statement on Urban Development Capacity will be available on this website soon.
Amendments to the Proposed NPS-UDC
Recommended changes to the Proposed NPS-UDC and the Minister's decisions
Following public consultaion, officials from the Ministry for the Environment prepared a report for the consideration of the Minister for the Environment setting out recommended changes to the Proposed NPS-UDC. This report has been prepared as required under section 52 of the Resource Management Act 1991 (RMA).
The report recommended the retention of the scope and most of the content of the Proposed NPS-UDC but made a number of key changes in response to points raised in the 140 submissions to improve the clarity of the policy and better reflect the context of the RMA.
The final NPS-UDC is the outcome of the Minister's decisions on the report and recommendations of officials on the Proposed NPS-UDC.
Review of the NPS-UDC
The Minister for the Environment intends to review the implementation and effectiveness of the NPS-UDC no later than 31 December 2021. The Minister shall consider the need to review, change or revoke the NPS-UDC.
The timing, five years after the NPS-UDC has come into effect, will allow for an evaluation of how well the evidence and monitoring requirements and responsive planning requirements under the NPS-UDC are working.
Officials from the Ministry for the Environment and the Ministry of Business, Innovation and Employment prepared or commissioned a number of reports and research to inform the development of the Proposed NPS-UDC:
- Section 32AA evaluation report
- Cost benefit analysis under section 32 of the RMA
- Regulatory Impact Statement
- A short paper on international approaches to managing development capacity
- Business land: problems and causes - a report which looks at whether there are problems with the availability of business land, prepared by Business and Economic Research Limited.
- Signals of under-capacity: the practicalities of monitoring price signals under the National Policy Statement on Urban Development Capacity
See also the report on the methodologies used by some local authorities to evaluate demand and supply of development capacity: How councils estimate demand and supply of development capacity for housing and business.
Minister's media releases:
- New policy proposed for urban development [Beehive website]
- NPS on urban development agreed as building boom continues [Beehive website]
The Productivity Commission’s inquiry into Using land for housing [New Zealand Productivity Commission website]