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Government Plans to Streamline Building Consent System

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3 MIN READ

The Government recently announced it would be reforming the building consent system. Building and Construction Minister Chris Penk says New Zealand has some of the least affordable housing in the world. He says that there are 67 building consent authorities nationwide, with differing interpretations of the building code, which isn’t serving Kiwis well. “At the […]

The Government recently announced it would be reforming the building consent system.

Building and Construction Minister Chris Penk says New Zealand has some of the least affordable housing in the world. He says that there are 67 building consent authorities nationwide, with differing interpretations of the building code, which isn’t serving Kiwis well.

“At the heart of the issue is unreasonably high building costs and a cumbersome consenting system which saps productivity and disincentivises growth and development,” he said.

“This is especially challenging for large-scale home builders and off-site manufacturers, along with modular and prefab builders, who work across regional boundaries.

“For example, in a recent survey of Master Builders Association members, 80 percent reported having to deal with multiple BCAs, and 66 per cent experienced delays.

“We need to incentivise innovative solutions that improve productivity and enable building at scale.

“That’s why we are beginning discussion on options to replace the current BCA system.

“This work is in addition to reforms already underway to improve the existing building consent process, such as making it easier to build granny flats by removing consent requirements, increasing the uptake of remote inspections and removing barriers for the use of overseas building products.”

Experts Weigh In

Chief executive of the NZ Property Council, Leonie Freeman, backs the government’s plans, saying, “This long-overdue reform aimed at cutting through red tape and delivering faster, more efficient development outcomes.”

She believes the announcement could mark the beginning of a new era for the construction industry. “The Government’s commitment to exploring solutions that will streamline building consents is a positive step toward addressing these long-standing issues. It signals that we’re moving in the right direction for a more efficient, predictable, and cost-effective development process.

“At the heart of this is the goal we all share: building more homes more quickly and at a lower cost. The ripple effects of a more efficient system would be felt across every community in New Zealand.”

Experts welcome building consent system reforms, but some are concerned that introducing private companies could lead to negative outcomes.

Carolyn Hill, Lecturer in Environmental Planning, University of Waikato lecturer in environmental planning Carolyn Hill told the Science Media Centre that the reform centres on two key questions: how to make construction more affordable, and who is going to carry the liability.

“Reform of the building consent system is critical to address one aspect of unaffordability – being the costs associated with long processing times and inconsistency between Building Consent Authorities,” she said.

“But if Aotearoa New Zealand is going to take housing seriously, it needs to address tax reform and commit to public sector housing provision as well.

“It’s one thing to say liability can be carried by the private sector, and another to actually make that happen – especially as problems only rear their heads decades down the line.

“Lessons from the 1990s Leaky Buildings saga will be critical here if we are to avoid serious adverse outcomes for future taxpayers.

“Finally, what’s the opportunity here? This proposed regulatory reform is not in isolation – it’s the latest iteration of long political wrestling with questions of development, infrastructure and environment.

“This work must happen together with Resource Management Act reform, with new thinking about what needs to be regulated, how, and where to frame it up in legislation. A holistic approach is critical for genuine efficiencies – and actually good outcomes – for New Zealand and New Zealanders.”

Concerns About Going Private

Engineering New Zealand Te Ao Rangahau agrees that the building consents system needs to be reformed. Chief executive Dr Richard Templer told the Science Media Centre it’s encouraging to see the Government address this issue.

“An efficient and effective building consent system with appropriate checks and balances – underpinned by principles of accountability, clarity as to who is qualified for different kinds of work, and public safety – should be the goal of any reform in this area. There are a number of ways to achieve this,” he said.

“But Engineering New Zealand is concerned that introducing private companies into the system could comprise outcomes of public safety, quality and liability, as happened previously.

“Minister Penk has observed there is variation in consenting processes. An option here is for producer statements to be formalised within consenting processes.

“Building and fire design work – which have a clear degree of complexity – should also require a producer statement from a Chartered Professional Engineer. Combined, these measures could easily serve to improve quality, accountability and standardisation.”

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