Changes to National Policy Statement for Highly Productive Land
The National Policy Statement for Highly Productive Land (NPS-HPL) is in line for revision, following concerns that it constrains urban development too much. This comes as part of a larger national direction to change the operation of the resource management system under the Resource Management Act 1991 (RMA). The Government has set out that its top priority is economic growth and that there needs to be a balance of social, economic, cultural and environmental objectives.
NPS-HPL
The NPS-HPL restricts the rezoning, subdivision and use of highly productive land. Where land is identified as highly productive, the rezoning, subdivision and use of that land can be challenging. Land is identified as highly productive on an interim basis in the current NPS-HPL as LUC 1, 2 and 3 land in the New Zealand Land Resource Inventory (NZLRI) maps. LUC 1 land is very versatile, with LUC 2 having slight limitations, and LUC 3 moderate limitations. There have been concerns that the inclusion of LUC 3 land (which is less versatile than LUC 1 and 2) in the NPS-HPL may overly restrict the supply of greenfield land, which may be suited for housing in some parts of the country.
The current NZLRI maps lock in which land is “highly productive” until a future mapping exercise is completed. This means that currently there is generally no opportunity to challenge whether land is “highly productive” or not when considering a development proposal on a specific site. However, the current NPS-HPL requires a future mapping exercise on a wider scale, to identify highly productive land across a region. This was due to be completed by late 2025 and notified in a regional policy statement. It was anticipated that land owners would be heavily involved in this process, given the possible development benefits which could arise if land could be reclassified from the interim “highly productive” to “not highly productive”.
Proposal
A range of changes to the NPS-HPL are now proposed for consultation, particularly to address the restrictions the NPS-HPL places on LUC 3 land. The proposal aims to provide more opportunities for urban development, while retaining the most agriculturally productive land for primary production. The proposal includes:
- Maintaining existing NPS-HPL restrictions on LUC 1 and 2 land (with some amendments for quarrying and mineral extraction).
- LUC 3 land to be removed from NPS-HPL restrictions on commencement of an amended NPS-HPL. The intent behind this is to enable greenfield developments to provide additional housing capacity with immediate effect.
- Extending timeframes for mapping of HPL to be completed. Consultation is sought on how the mapping of highly productive land is managed in the future, including whether the extension should be for two to three years, or generally suspending requirements until there is further direction in the resource management system (including progress on the replacement RMA).
- Recognition that there may be some areas important for food and fibre production which may be compromised by the removal of LUC 3 (these could include Pukekohe and Horowhenua) and that these areas should be subject to the NPS-HPL. The consultation seeks to test alternative ways to continue to protect this land, which could include identifying ‘special agriculture areas’, which is a new land category.
Why is this important?
The above approach would mean that LUC 1 and 2 land remain as currently identified, but. it would release LUC 3 land for development, removing the NPS-HPL constraints on rezoning, subdivision and use on that land category.
For Councils, these proposals will impact timeframes and scope of mapping of HPL in regional policy statements and district plans and for those regional councils who have already commenced the background work for the more detailed mapping exercise, this will now potentially be placed on hold. The proposal may also generate more consideration of plan changes to rezone LUC 3 land for urban development and for rural-residential development.
Consultation
Consultation on package 2, including the NPS-HPL is open for consultation, and closes at 11.59 pm 27 July 2025. Please contact your usual DLA Piper adviser if you would like legal assistance in preparing a submission.