Reform Series — The Funnel Era of Resource Management
Reform Series — The Funnel Era of Resource Management
Friday 27 March, 2026
Is it a bird? Is it a plan? No, it’s a funnel that defines the new approach to environmental law in Aotearoa New Zealand in the Planning and Natural Environment Bills underpinning the Resource Management Act (RMA) reform. A broad set of goals in each Bill will form the top of the proposed ‘funnel’, a hierarchy of planning instruments. Not only has the scope of the Bills shrunk in comparison to the effects that can be considered under the RMA, the number of planning instruments that decision makers can consider has shrunk too. But what will happen if there’s a conflict between these planning instruments? Read on to find out what we know, so far, about the proposed funnel hierarchy and resolution of conflict between planning instruments.
Hierarchy of Instruments – Planning Bill and Natural Environment Bill
Goals
The goals of each Bill are different: while the Planning Bill goals focus on ensuring the appropriate use and development of land, the Natural Environment Bill goals focus on the use, development and protection of natural resources. For example, a goal of the Planning Bill is “to create well-functioning urban and rural areas” and a goal of the Natural Environment Bill is “to enable the use and development of natural resources within environmental limits”.
Despite the different purpose of each Bill there is some overlap, and even potential tension, between their respective statutory goals (as well as tension between goals within the same Bill). A potential tension between goals to protect highly productive land while enabling urban development is emerging already. We expect the National Policy Direction prepared by the Minister will help to resolve conflicts that arise between the goals.
National Policy Direction and National Standards (collectively, the National Instruments)
The National Policy Direction will contain more detail on each goal and direct how the goals must be achieved. While the National Policy Direction will replace current national policy statements made under the RMA, these existing policy statements are expected to at least inform the new National Policy Direction even though there are differences between the Bills’ purposes and goals compared to the purpose and principles of the RMA.
National Standards will provide further detailed direction to implement the National Policy Direction, provide detail on how a goal is to be achieved if that is not covered by the National Policy Direction and contain standardised plan provisions across the country.
Regional Spatial Plans
Regional Spatial Plans, Land Use Plans and Natural Environment Plans will form part of a single Combined Plan for each region in the country.
Regional Spatial Plans are a product of the Planning Bill and will implement the National Instruments. They will be prepared and notified for submissions first in order to identify and provide for various mandatory matters, including constraints on the use and development of land and the coastal marine area.
Land Use Plans and Natural Environment Plans
Local Land Use Plans and Natural Environment Plans are provided for in the Planning Bill and Natural Environment Bill respectively. They will be notified for submissions once the Regional Spatial Plan has been adopted. Land Use Plans and Natural Environment Plans will implement the Regional Spatial Plan.
Anyone with an interest in shaping the use and development of land in their local area should prepare to engage when local authorities consult on and notify the Regional Spatial Plan, followed by the local Land Use Plans and the Natural Environment Plans; the Bills propose to limit public participation in subsequent applications for planning consents and natural resource permits.
Conflict Resolution
The extent of potential conflicts between the two Bills’ goals, and between goals within the same Bill, will not be clear until the collective National Instruments have been issued. How the National Policy Direction will help resolve those conflicts will be closely watched.
For expected timeframes of the release of each of the National Instruments, see our article: A faster transition to the new resource management system - what to expect.
If you have any questions on the changes proposed under the new Bills, please contact one of our experts below.
