Minor changes to the Public Works Act 1981 to ensure fairer and moreefficient land acquisitionprocesses

Problem

508. The Public Works Act 1981 (PWA) enables the Crown to acquire land for public works by agreement or compulsory acquisition and prescribes landowner compensation. The RMII review found that the PWA process for acquiring land and compensating affected landowners is generally working well. There are, however, some opportunities to improve the efficiency and fairness of the PWA compensation, land acquisition and Environment Court objectionprovisions.

509. Although the compulsory acquisition provisions are rarely used, public works providers perceive that the compulsory acquisition process and prescribed compensation are barriers to infrastructure development. Feedback from public consultation also raised concerns that the compensation process is unfair. Current implementation of the process for land acquisition under the PWA is not as efficient as it couldbe.

Proposal

510. In addition to being compensated for the market value of their property, a solatium (form of compensation) is paid to landowners whose home (main residence) is being acquired. On vacant possession, it is paid for disruption, interference and otherinconvenience.

511. The proposal is to make the following changes to PWA solatiumpayments:

· The solatium will increase to up to $50,000. It has not been increased from $2000 since it was introduced in1975.

· As authorised by Cabinet, the Minister for Land Information approved the following criteria for the solatium payment of up to$50,000:

o a payment of $35,000 is paid to all eligible landowners, with furtherpaymentto landowners who meet either or both the followingcriteria:

(a) - $10,000 for early (within 6 months) written agreement to theacquisition;

(b) - $5,000 depending on theircircumstances.

· Cabinet agreed to introduce a solatium for landowners whose acquired land does not include their home, as these landowners also suffer disturbance and inconvenience through acquisition. This amount is set at 10% of the value of the land acquired, from a minimum of $250 up to a maximum of$25,000.

· Cabinet agreed to enable future changes to the amounts of the solatium to be made via Order in Council. This is so the amounts remainrelevant.

512. To make the land acquisition process more efficient and to reduce duplication, the proposal willalso:

· Amend s 4C(2)(a) of the PWA to enable the Minister for Land Information to delegate the administrative function of issuing ‘notices of desire’ under s 18(1) to the LINZ Chief Executive. This would shorten the land acquisition process by approximately two weeks without compromising landownerrights.

· Enable the Environment Court to accept evidence in PWA compulsory acquisition cases that has already been heard in RMA hearings or related Environment Court enquiries or appeals.

513. The solatium changes adequately compensate landowners for the disruption created by acquisition of their home and/or land. This will help improve confidence in and public acceptability of the acquisition of land for public works, thereby assisting with acquisition by agreement and encouraging vacant possession. This will likely also result in improvements in land acquisition times which affect infrastructure deliverytimes.

514. The changes to the Environment Court hearing procedures (P 4.2) will assist in streamlining the process for PWA objections to compulsory acquisition, with time and cost savings for both landowners and public worksproviders.

Alternativeoptions

515. No alternative options were considered for thisproposal.

Conclusions

516. The proposed changes are expected to improve the efficiency of land acquisition processes under the PWA. The changes are likely to impact on both the fairness and perceived fairness of landowner compensation. While more efficient acquisition processes are expected, the impact of the proposal on infrastructure delivery times has not been specificallyassessed.