Financial contributions under the Resource Management Act 1991

Abstract

This research identifies how financial contributions for development are obtained under the Resource Management Act 1991 (the RMA). Ten city/district councils and two regional councils (one being a unitary authority) agreed to participate in this research, enabling an assessment of the financial contribution section of their plans. The inclusion of financial contribution provisions in plans is problematic for many local authorities. The RMA provides a framework for policy but gives no specific guidance to local authorities as to how the level of contribution should be assessed. This research has found that there exists considerable variation in how councils have determined financial contribution provisions. Another controversial issue for councils is how to apportion service costs between the developer and the community. In 1996 Amendments to the Local Government Act 1974 (the LGA) required councils to develop long-term financial strategies and funding policies to assist in analysing how services should be priced in terms of public/private benefit, intergenerational equity and, where adverse environmental effects occur, the polluter-pays principle. The transparency of the annual plan process under the LGA is considered by councils to be a more expedient means for determining levels of contribution than the provisions under the RMA. Currently, Local Government New Zealand, the New Zealand Planning Institute and the Ministry for the Environment support a proposal that financial contributions be transferred from the RMA to the LGA. An issue for the review committee to address is that the RMA confirm procedures for developers to appeal a change to the financial contribution provisions of a plan to the Environment Court. Where the level of contribution is assessed through the annual plan process there are no direct appeal rights to the Courts.