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Cost Recovery Policy for Proposals of National Significance

Chapter 1: Introduction

Chapter 2: Principles

Chapter 3: Cost Recovery Policies for Interventions

Chapter 4: Application of Policy

Appendix A: Charge out rates for Ministry for the Environment staff time

Appendix B: Relevant sections of the Resource Management Act 1991

Chapter 3: Cost Recovery Policies for Interventions

40. There is a menu of intervention options available to the Minister. Each is discussed below. However, before any intervention is undertaken, there will be Ministry for the Environment time involved; for example, advising the Minister in relation to the potential intervention.

Take no action (ie, decide not to intervene)[Section 141A(4)(a).]

41. There is nothing arising from the (non) intervention to recover. The applicant will pay the local authority the normal processing costs that the local authority charges them.

Call in the matter [Section 141A(4)(b).]

42. The Minister may direct that the matter be decided by:

• a board of inquiry[Section 141B(1)(a).]
• a direct referral to the Environment Court.[Section 141B(1)(b).]

43. Note that not all interventions are ‘call ins’ so this term should only be used for these two specific actions and is not to be used to mean all intervention options.

Notification of direction

44. The Minister must give public notice of a direction to call in the matter. The relevant information must be made available for inspection, and any person may make a submission to the Minister on the matter. These submissions are then referred to the board of inquiry or to the Environment Court.

45. The costs of public notification, and of receiving and handling the submissions are recoverable from the applicant. This may include the costs of associated means of communicating the matter and the processes to be followed.

Board of inquiry

46. The Ministry for the Environment will undertake any cost recovery required for the costs associated with the board of inquiry matters. There are establishment costs to this option, including finding and appointing members. Appointing the board of inquiry can be regarded as a cost of governance and will not be recovered from the applicant.

47. The costs of a board of inquiry in exercising its powers are all recoverable from the applicant.

48. They may include, for example:

• the board of inquiry asking for reports to be prepared
• staff or consultants servicing the board or preparing reports for it
• the standing costs (eg, members’ time, service provision of the board of inquiry)
• hearing costs, including venue, members' time, staff and consultants' time, transcription and related disbursements, and accommodation and catering
• announcements, publication and distribution of both a draft and final report.

Direct referral to the Environment Court

49. The Minister may wish the matter to be decided by a direct referral to the Environment Court.

50. The Court (which comes under the Justice portfolio) has its own charging and mechanisms for dealing with party-party costs – they fall outside of the scope of this policy.

51. Costs of referring the matter to the Court will be considered governance costs and will not be recovered from the applicant.

Make a submission on the matter for the Crown[Section 141A(4)(c).]

52. The costs of making a submission (essentially the time of various departmental officials and specialists) will generally be met by the normal appropriation process – it is part of the normal function of those particular agencies. The costs may, however, require a separate appropriation. This is not a cost to be borne by the applicant.

53. Note, however, that this policy applies only to the making of a submission to the relevant authority on the matter. It does not affect the ability of the Crown to seek to recover its costs in connection with any subsequent actions in the Environment Court of in other Courts.

Appoint a project co-ordinator[Section 141A(4)(d).]

54. The role of a project co-ordinator is to advise and assist the consent authority. A project co-ordinator appointed by the Minister is an additional resource to assist the consent authority to process a matter.

55. In practice, a project co-ordinator could help organise hearings, co-ordinate any experts who may need to assess a matter, including sourcing external expertise, and work between consent agencies.

56. As with some other interventions, the costs associated with deciding to appoint a project co-ordinator and with making the appointment are regarded as costs of governance, and will not be recovered from the applicant. The actual cost of the co-ordinator’s role in processing the matter will be recovered. For administrative convenience, the Ministry will generally seek to establish an arrangement where by the co-ordinator’s costs are recovered directly by the local authority in parallel with the recovery by the local authority of other processing costs.

Direct the consent authorities to hold a joint hearing[Section 141A(4)(e).]

57. A joint hearing is a hearing that involves two or more consent authorities. It avoids the need for multiple hearings where several resource consents are required, thus making the process more efficient and integrated.

58. Joint hearings can be useful when a project crosses multiple territorial authorities or when a project requires consent from both a territorial authority and a regional council. Local authorities routinely hold joint hearings of their own accord. The Minister’s power acts as a backstop to ensure joint hearings are held when it makes sense to do so.

59. Directing that a joint hearing be held would have only minor administrative costs and these would not be recovered from the applicant.

Appoint one additional hearings commissioner[Section 141A(4)(f).]

60. Local authorities often appoint commissioners to hear and decide on resource consent applications, and make recommendations on designations and plan changes, in place of or alongside elected representatives. Commissioners act under delegated authority and are often used when there are highly complex or technical issues under debate; when there may be a conflict of interest; or simply when the volume of hearings makes the hearing by councillors unfeasible.

61. The Minister may appoint an additional commissioner. As with some other interventions, the costs associated with making the appointment is regarded as a cost of governance and will not be recovered from the applicant. The actual cost of the commissioner’s role in processing the matter will be recovered. For administrative convenience, the Ministry for the Environment will generally seek to establish an arrangement whereby the commissioner’s costs are recovered directly by the local authority in parallel with the recovery by the local authority of other processing costs.