Work programme

Fresh water

Fresh water is one of New Zealand’s key economic assets. While New Zealand is fortunate to have an abundant supply of fresh water, these freshwater stocks are coming under increased pressure from greater demands caused by a growing population, increased land-use intensification, and climate change. Also, urban pressures or poor land-use practices have caused some water bodies to become polluted which can take many years and many taxpayer and ratepayer dollars to clean up. Over allocation can also harm New Zealand’s economy as it creates uncertainty about the reliability of supplies which creates a significant barrier to investment.

To manage these pressures, New Zealand needs a freshwater management system:

• that encourages collaboration and engagement between regional councils, communities, iwi, and resource users at the front end of the decision-making process rather than confrontation at the back end
• where decision-makers have access to robust information about the impacts (economic, environment, and social) of the decisions they are considering and mechanisms to monitor, reassess and adjust decisions in light of new information and a strong national framework of expectations
• which makes decisions about allocating and using fresh water based on what is best overall for the economy and the environment.

In May 2011, the Government announced the Fresh Start for Fresh Water Programme. The Programme was built on the work of the stakeholder-led Land and Water Forum that included iwi advisors, electricity generators, primary industries, environmental organisations, recreational groups, with active observers from regional councils and central government during 2009 to 2012. The Forum succeeded in building a wide consensus on a pathway for reform. Their efforts have underpinned policy work by the Ministry for the Environment and the Ministry for Primary Industries to set in place the direction and foundations for a more efficient and effective freshwater management system, including the National Policy Statement for Freshwater Management 2011 (NPS-FM), and the creation of two funds to facilitate irrigation and clean-up iconic lakes and rivers.

In July 2013 following public consultation, the Government announced key elements of the next stage of the freshwater reforms to build on progress made to date. These were based on, and consistent with, the Land and Water Forum’s recommendations. These key elements included:

• strengthening national direction through an amendment to the NPS-FM to introduce a National Objectives Framework (NOF). The NOF will support regions to set freshwater objectives and limits, including a set of values a water body can be managed for with associated minimum states. The NOF will require that all water bodies meet minimum states for ecosystem health and human health
• development of an effective monitoring and evaluation framework for fresh water. This will allow evaluation of the performance of freshwater policy and the performance of council planning and consenting. It will also enable the evaluation of the environmental outcomes achieved, the environmental, economic and social impacts, and detection of emerging issues for continual improvement
• improving the quality of decision-making. This will be done by providing for a collaborative planning process for water, creating provisions for improved iwi/Māori involvement in the planning process, providing better guidance material and training, and outlining a streamlined and nationally-consistent approach to generating and using scientific and economic information so communities can focus on the discussions they need to have and avoid duplication and delay.

The total freshwater reform package is an integrated set of institutional changes and tools. Delivering the components to make this work will require a combined effort, with central government providing the direction and support needed for councils. Iwi/Māori, stakeholders and communities will all need to play their part to get high quality plans in place across the country by 2030.

Next steps for the freshwater reforms

Implementing these reforms is a long-term initiative, with solutions that start now and adapt over the long term. Consultation on the NPS-FM amendments ran from November 2013 to February 2014 with final decisions expected to be made and changes in place by mid-2014. The collaborative planning reforms are expected to be progressed through amendments to the Resource Management Act 1991 in a Bill to be introduced in 2014.

What will we do to achieve this?

The Ministry will:

• work alongside regional councils as they implement the NPS-FM
• support improved council, community and iwi/Māori decision-making under the RMA through:
  • improved planning processes, with the option of collaborative planning, supported by better guidance and training
  • a streamlined and nationally consistent approach to generating and using scientific and economic information to avoid duplication of effort and enable communities to focus on the decisions they need to make.
• help regional councils navigate the complexities of the new legislative requirements, with a medium-term intention of growing a community of practice in collaborative planning practice
• develop an effective monitoring and evaluation framework for fresh water. This will enable evaluation of the environmental outcomes and the environmental, economic and social impacts of freshwater management
• continue to support and monitor implementation by third parties of initiatives funded by the Fresh Start for Freshwater Funds, including the Lake Taupo Protection Programme, the Rotorua Lakes Protection and Restoration Programme, the Waikato River Clean-up Fund, and the Fresh Start for Fresh Water Clean-up Fund.

Resource management

The resource management system enables the sustainable management of New Zealand’s natural and physical resources, leading to better environmental, social, cultural and economic outcomes as New Zealand’s communities grow and change.

The resource management system has evolved over the past two decades as central and local government have adapted to meet changing and sometimes conflicting public needs and expectations. At the core of the resource management system is the Resource Management Act 1991 (RMA). While the RMA is a piece of legislation with an environmental focus, it is also our primary piece of planning legislation. The RMA provides the framework under which decision makers consider how best to meet the many and varied needs of their communities, while managing the potential effects on the environment.

New Zealand can do a better job of managing its natural and built resources and planning for the needs of its communities. The resource management system needs to encourage proactive rather than reactive decision-making. Effective community engagement is needed during the plan-making process to ensure the difficult decisions and trade-offs involving the use of natural resources are made early in the resource management process. Better plan making will provide greater certainty and predictability for all users and better environmental, social, cultural and economic outcomes for communities.

The Government has already embarked on a multi-phase programme of resource management system reform. The first phase involved simplifying and streamlining RMA processes to reduce delays, uncertainties, and costs. These 2009 amendments reduced the scope for frivolous, vexatious, and anti-competitive objections that can significantly increase costs for the consent applicant. They also established the Environmental Protection Authority to ensure the efficient processing of major projects of national importance within a set time limit of nine months.

The second phase of reforms began in 2013, with legislative amendments that improved the resource consent regime, streamlined the delivery of Auckland’s first unitary plan, improved the information basis for local decision-making, and improved the workability of the RMA through minor and technical amendments.

These reforms are set to continue with more fundamental changes to the RMA planned to improve New Zealand’s resource management system. These reforms will focus on improving engagement between communities, iwi/hapū and councils in resource management planning; the standardisation of local plan structure, format and content to provide more certainty and predictability for businesses and communities; reducing the costs and time taken to get decisions under the RMA; improving central government tools for providing national direction; and the development of a National Monitoring System to track the performance of the resource management system. These reforms are expected to be introduced in the Resource Management (System Reform) Amendment Bill in 2014.

To ensure the success of these reforms, the Ministry will play a more collaborative hands-on role by providing active support for and engagement with councils and others, including iwi, not only during the implementation of the reforms but in the longer term also.

Environmental reporting

Reporting on our resource use and environmental impacts is an important element of the environmental and resource management system. In February 2014, the Government introduced the Environmental Reporting Bill into Parliament. This Bill mandates the provision of comprehensive environmental information in a way that is easy to understand, independent from the government of the day, and relevant. Once implemented, decision makers will have access to consistent and representative data to inform the debate about the interface between environmental, economic, cultural, and social dimensions so resources can be allocated to the best use. Over time, decision makers will be able to assess the impact of their decisions and be able to make informed adjustments to policies and plans.

What will we do to achieve this?

The Ministry will:

• advise on possible national direction instruments for priority policy issues to be progressed with urgency, in advance of the finalisation of the new national planning template
• develop a set of council performance expectations with a new National Monitoring System in place to track the performance of the resource management system
• continue to develop a medium-term view of potential future reforms to the resource management system
• assist Ministers with their statutory functions under the Resource Management Act
• advise the Minister on proposals of national significance
• advise on and implement the environmental reporting framework consistent with the Environmental Reporting Bill
• continue working with data providers, such as regional councils and Crown research institutes to improve the quality and breadth of national-scale data collection, as well as its storage and accessibility.

Subject to the introduction of a Resource Management (System Reform) Amendment Bill, we will:

• deliver a package of materials, including guidance, templates, and ‘model’ agreements, seminars and training, to support councils, iwi, and others to implement the reform changes
• develop a national planning template, with input from iwi and key stakeholders, which provides national consistency through standardised structure, format, and content, while still allowing for specific local issues to be addressed through locally-developed plan content
• provide targeted support to individual councils (both those who can act as champions and those most in need of support) and through groups of councils (in communities of practice) to ensure the most effective implementation of the new approaches to planning and consenting.

Marine

New Zealand’s Exclusive Economic Zone (EEZ) is the area of sea and seabed that extends from 12 nautical miles off the coast to 200 nautical miles. Together with our continental shelf, its area is about 20 times the size of our land mass, making it one of the largest EEZs in the world. This zone not only supports highly diverse marine ecosystems and species, but also provides New Zealand with significant economic opportunities through fishing, petroleum mining, and shipping. It also connects us to the rest of the world through undersea telecommunication cables, and ships and aircraft passing through the zone. Being an island nation, the health of our ocean, our land, and our people are inextricably linked.

While the Resource Management Act 1991 regulates activities on land and in the territorial sea out to 12 nautical miles, there has been limited ability to regulate activities beyond this limit. This gap in New Zealand’s environmental management regime was filled when the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 and regulations came into effect.

The Ministry is now focusing on ensuring the successful implementation of the regulatory framework that underpins the EEZ. Gaining a better understanding of New Zealand’s marine environment, particularly for the location of sensitive environmental and extractive resources will become increasingly important over the next four years to ensure the EEZ framework remains fit-for-purpose over time. Improving the understanding of the marine environment and taking a broader, more integrated and strategic approach to resource management across marine interests (for example, fishing, minerals mining, and conservation) will be an increasing focus over the coming five to 10 years.

Public interest in the marine environment is high at present – most recently in oil and gas exploration and in contested areas where values are high nearer the coast. The Ministry, and Natural Resources Sector agencies, intend to use the current debate to build agreement on how New Zealand can maximise value from its marine resource within environmental limits.

What will we do to achieve this?

The Ministry will:

• monitor and evaluate the EEZ regulatory regime and marine pollution regulations in the territorial sea. We will work closely with, and support, the Environmental Protection Authority to sustainably manage the EEZ
• work with other agencies to embed an integrated approach to managing the marine environment that helps ensure New Zealanders are getting the highest value (includes economic, environmental, social and cultural values) within environmental limits by:
  • establishing how the marine environment functions and how people value and use it
  • fostering collaborative approaches to making and choosing new management options
  • minimising uncertainty for users and decision makers where high value uses collide
• influence existing research programmes to improve our understanding of the marine environment and its resources
• ensure we are complying with our international marine-related agreements and obligations and contribute to developing new international agreements.

Climate change

The current focus of our climate change activity is both New Zealand’s domestic policy settings and international negotiations. New Zealand is involved in negotiating a new global agreement on climate change to come into effect from 2020 with the goal of limiting global temperature rise to two degrees Celsius. The Government’s main domestic policy instrument for addressing climate change and providing an incentive to reduce greenhouse gas emissions is the New Zealand Emissions Trading Scheme (NZ ETS).

The climate change work programme has five key components: international negotiations, the NZ ETS, other mitigation measures, delivering on international reporting obligations, and adapting to anticipated climate change impacts. These components are underpinned by work to maintain the evidence base.

A key focus remains the effective operation of the NZ ETS. We have a continuing role in ensuring the effective operation and implementation of the NZ ETS, advice to the Government, and developing and updating regulations.

The NZ ETS was amended in 2012, following a review in 2011, to improve its operation and effectiveness. In December 2013, the Minister for Climate Change Issues announced further decisions restricting the eligibility of Kyoto units in the NZ ETS from mid-2015 onwards. We are continuing to monitor the impact of that decision and will provide advice on whether any further changes might be necessary before the proposed 2015 review of the NZ ETS. There is an ongoing need to assess how the NZ ETS should evolve as New Zealand’s international obligations change and to continue to explore options for measures to sit alongside the NZ ETS that will improve productivity and reduce New Zealand’s greenhouse gas emissions.

We lead cross-government activity on climate change, supported by many other government agencies. We also coordinate national and international reporting on greenhouse gas emissions, removals and projections. International reporting is supported by the Land Use and Carbon Analysis System, which tracks and quantifies changes in land use.

We also provide information and guidance on climate change effects considered most likely to have a significant impact at a regional, national or sectoral level, and the expected timing of these effects. This information is provided to help local government and other decision-makers plan for and adapt to the effects of climate change. This includes technical guidance on preparing for future flooding and coastal hazards.

The key priorities for the Ministry between now and 2015 will be as follows.

• involvement in negotiations towards a new global climate change agreement and considering possible contributions New Zealand could make under that agreement
• ongoing monitoring of the effective operation of the NZ ETS, including consideration of possible approaches to auctioning, ensuring the NZ ETS remains appropriate to domestic and international circumstances, and preparing for the next NZ ETS review
• identifying potential measures to sit alongside the NZ ETS
• assessing how New Zealand could strengthen its ability to adapt to the impacts of climate change
• ensuring the processes which support New Zealand’s climate change reporting under international obligations remain fit-for-purpose and deliver on these obligations in a timely manner.

What will we do to achieve this?

The Ministry will:

• advise on climate change policy, including the evolution of the New Zealand Emissions Trading Scheme and the need for other mitigation measures
• ensure the effective operation of the Emissions Trading Scheme, including administration of cross-government activity, maintenance and development of regulations, and engagement with stakeholders
• participate in international climate change negotiations and advise on New Zealand’s negotiating position and possible New Zealand contributions under a new global agreement, with supporting domestic policy options
• project and report New Zealand’s greenhouse gas emissions and removals for the first commitment period of the Kyoto Protocol (2008-2012) and for the period 2013-2020, to comply with international obligations and to track progress towards meeting New Zealand’s commitments.

Environmental hazards and waste

While fundamental to our economy and environmental management, the use and management of hazardous chemicals and the introduction of new organisms pose risks to New Zealand’s environment, people’s health and our economy. The policy framework is designed to manage these risks, while ensuring New Zealand gets the benefits delivered by the use of hazardous substances and new organisms. There is also a need to manage the contamination resulting from unwise use and disposal of hazardous substances in the past.

New Zealand is a party to multilateral environmental agreements that help manage the risks posed by certain hazardous substances, hazardous waste and new organisms. Participation in such agreements offers advantages to New Zealand’s trading environment (for example, consistency of classification and labelling) and management of environmental hazards. We will continue to work with other countries and international agencies, and with New Zealand departments and industry, to ensure New Zealand meets its obligations under these multilateral environmental agreements.

Our role is to monitor the performance of the system for regulating chemical and biological risk. Our focus will continue to be to improve New Zealand’s hazardous substance management regime to help New Zealand businesses be safe, sustainable and successful. We are working with the Environmental Protection Authority (EPA) and Ministry for Business, Innovation and Employment on key actions to reduce workplace harm. Part of this includes reforming the hazardous substances policy framework to ensure businesses are better able to understand how to keep safe in the workplace, and ensure businesses are incentivised to comply with safety requirements. This work is largely being progressed through the Health and Safety Reform Bill. Together with the Environmental Protection Authority we are also looking to identify ways in which the hazardous substances regime can operate more efficiently and provide savings to New Zealand. This will include investigating opportunities for increased alignment with other countries, and assessing how the hazardous substances application and reassessment processes could be more cost efficient.

The importation of products containing asbestos has been identified as an issue requiring further investigation, given the risks asbestos presents to human health. We are commissioning research into this issue which will inform any further steps to be taken.

In the new organisms area, we note that the current system may not be sufficiently flexible or responsive to scientific advances. Our current regulations under the HSNO regime date from 1998, and it is timely to assess their effectiveness. We intend to improve monitoring of the Hazardous Substances and New Organism (HSNO) regime, with a particular focus on risk management.

The Ministry is taking several steps to address duplication in the management of hazardous substances and new organisms at the national and regional level. Regulating hazardous substances and new organisms under two regimes can lead to unnecessary compliance costs and complexity. Proposed amendments to the RMA will clarify the role of local authorities and we will continue to engage with local authorities, through events such as the New Zealand Planning Institute Conference and on a one-on-one basis as needed.

We will continue to support the EPA to improve the monitoring of the HSNO Act to demonstrate how we are reducing harm to people and the environment, that the regime is efficient, and policy and operational responses are proportionate to risk.

We are also providing advice on the policy framework for waste minimisation and management that protects the environment and provides environmental, social, economic and cultural benefits. Waste disposal at landfills can indicate that resources are not being used efficiently and can contribute to pollution.

In addition to providing advice on the policy framework, the Ministry has a more operational role in administering the waste levy paid on waste disposed of to landfill and the accreditation of product stewardship schemes that minimise waste and/or reduce the environmental impact of manufactured products. Another area of significance will be the work with territorial authorities to help them meet statutory planning requirements for waste management and minimisation.

What will we do to achieve this?

The Ministry will:

• complete the Parliamentary treaty examination process for the new Minamata Convention on Mercury
• implement upcoming and new international obligations towards hazardous chemicals and waste (for example, disposing of polychlorinated biphenyls under the Stockholm Convention on Persistent Organic Pollutants)
• progress reforms to the hazardous substances policy framework aimed at increasing compliance, and reducing compliance costs
• commission research into the importation of products containing asbestos into New Zealand
• assess the HSNO (Organisms Not Genetically Modified) Regulations 1998 to ensure their effectiveness
• reduce duplication in RMA plans of HSNO controls through a number of ways, including legislative amendment and engagement with local authorities
• work with the EPA to continuously improve the monitoring of the HSNO regime, particularly to improve the monitoring of environmental effects
• advise on and implement the Waste Minimisation Act 2008, including collecting and distributing waste disposal levy funds, assessing product stewardship schemes, and facilitating good waste management and minimisation planning by local authorities
• investigate options for government intervention for improving long-term management of priority waste streams.

Treaty commitments

The Crown and iwi both have an interest in managing and developing natural resources. The majority of Treaty of Waitangi settlements now have some natural resource component. This requires the Ministry to be involved in negotiating Treaty settlements and environmental accords and to implement obligations under these agreements. Our aim is to ensure that settlements provide appropriate redress but do not conflict with or undermine existing natural resources policy objectives.

Treaty settlements and environmental accords often contain provisions which provide for ongoing Māori involvement in natural resources management. This may include provisions for co-management or joint management involving both local authorities and iwi. The Ministry has a significant and growing role in implementing aspects of settlements and accords. Currently we have ongoing obligations with 27 settled groups and the most significant of those are related to the Waikato River.

We are also focusing on developing a stronger working relationship with Māori to ensure effective natural resource management. We have developed valuable relationships with iwi while working on policy related to the resource management system, water, climate change, and the Exclusive Economic Zone.

What will we do to achieve this?

The Ministry will:

• implement our obligations under Treaty of Waitangi settlements and environmental accords
• support the Waikato River co-governance and co-management arrangements
• support the Office of Treaty Settlements in negotiating historical Treaty of Waitangi settlements, and negotiate environmental accords and relationship agreements with iwi.

Working with others

In providing policy advice to the Government, we generally work with others, both domestically and internationally, to find solutions to environmental problems. Community involvement and international cooperation can often achieve solutions and results we could not deliver working alone.

At a domestic level, we administer grant schemes through which parties can seek funding to achieve environmental objectives. Through these grant schemes, the government partners with other parties such as community organisations and councils to achieve more than either party could achieve alone.

At the international level, we are involved in negotiating and implementing environmental cooperation agreements associated with free trade agreements. We also support the Ministry of Foreign Affairs and Trade negotiations of environment provisions associated with those agreements. These provide for New Zealand to share with, and learn from, other countries about best practice in environmental management and to advance our common interests.

We also work within international environmental forums to:

• promote action on important international environmental issues
• ensure New Zealand’s interests are protected and advanced in the work of international organisations such as the Organisation for Economic Cooperation and Development, the United Nations Environment Programme, and the United Nations Commission on Sustainable Development
• ensure New Zealand meets its obligations under multi-lateral environment agreements it has ratified, including the United Nations Framework Convention on Climate Change, the Stockholm Convention, and the Rotterdam Convention.

The ‘Working with others’ result area is mainly operational, with a focus on administering government funding, coordinating activities with partner countries, and involvement in projects with other organisations.

What will we do to achieve this?

The Ministry will:

• contract, manage, monitor and audit government funding and grant schemes, including the Community Environment Fund (to support practical environmental initiatives) and the Environmental Legal Assistance Fund (to remove barriers to public participation in resource management processes)
• through the Contaminated Site Remediation Fund, help regional councils investigate and remediate priority contaminated sites in their regions
• provide support for collaborative governance approaches on environmental problems
• work with other countries to develop international agreements designed to address environmental issues
• help other countries improve their environmental policies and programmes.

Monitoring, review and evaluation

Quality of analysis and advice

Most of the Ministry’s work involves advice, ranging from advice about the policy framework and legislation through to advice on operational matters.

We operate a system for assessing, reporting on, and improving the quality of our policy advice products, building on our policy guide called COBRA (Cost Opportunity Benefit Risk Analysis) developed in 2010 to guide the policy process.

An internal panel of senior Ministry staff, with rotating membership, assesses a sample of the Ministry’s policy advice with an independent chair. The frequency of panels has been increased in 2013/14 from quarterly to two or three times each quarter.

This approach produces a rating for external reporting purposes, feedback to relevant analysts and managers that supports organisational learning and continuous improvement, and overall messages for communication across the organisation on areas for improvement. A quality target is now to be built into all directors’, managers’ and principal analysts’ personal development plans. New common policy indicators have also now been introduced across government departments, which will help us to better understand and track the progress of our policy function. Our three new measures covering cost per output hour, ministerial satisfaction and technical quality assessments appear in the Information Supporting the Estimates 2014 (Budget documents).

Criteria for quality policy advice

The Ministry’s quality policy advice criteria can be summarised as an expectation that policy advice and analysis:

• focuses on the needs of the audience and the decisions needed
• provides appropriate context to explain the big picture
• has a clear problem definition which indicates the size and scope of the problem, how current policy settings contribute, and how changes can lead to better outcomes
• displays a robust approach to analysis, based on evidence and logic
• identifies the risks of the problem, risks of change options, delivery risks, and mitigation strategies
• displays evidence of appropriate consultation and collaboration across government and with affected parties
• identifies and evaluates a range of practical options for meeting the policy objectives, and selects a preferred option
• provides action-oriented recommendations with realistic commitments
• is well-structured, presented in the correct format, and is free of errors.

There are a number of requirements we must meet in relation to legislation, regulations, and national instruments (for example, national policy statements under the Resource Management Act). This includes assessing the likely benefits, costs and effects of new or changed legislation and regulations. The Ministry’s Regulatory Impact Analysis Panel assesses the quality of our regulatory impact statements in meeting government requirements. The panel also provides advice to staff on how to conduct their analysis.

Monitoring implementation of the Resource Management Act

We are currently developing a National Monitoring System that is expected to replace the Biennial RMA Survey of Local Authorities (RMA Survey). The system will institute new arrangements for the collection of more detailed, nationally consistent and comparable information on the implementation of the RMA, including national environmental standards and national policy statements.

Measuring effectiveness of policy interventions

Monitoring and evaluation of core policies and programmes is a central feature of our approach to policy development, implementation and delivery. Our Evaluation Hub is responsible for planning, coordinating and facilitating the implementation of our multi-year evaluation programme and is focused on building evaluative capability across teams.

During 2014/15 we will continue to build upon the monitoring and evaluative activity already underway, and will develop monitoring and evaluation plans for significant new policy initiatives and regulations under existing legislation (eg, the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 and the Hazardous Substances and New Organisms Act 1996. We will also share monitoring and review information more widely within the Ministry to encourage greater whole-of-Ministry ownership of results, and therefore place more emphasis on outcomes and our progress towards them.

We will be initiating a review of the Environmental Protection Authority (EPA) in July 2014 as mandated by Cabinet when the EPA was established. The scope of the review is expected to include the effectiveness of the EPA’s strategy, culture, resources and structure; a review of the EPA’s ability to fund its functions, including cost recovery practices across all of its functions with the intention to deliver a new charging framework to be in place for 2015/16; and how effectively the legislation is contributing to efficient decision making. This review will form a major component of our EPA Monitoring and Governance work programme during the 2014/15 financial year.

In line with our commitment to adopting a stronger partnership approach during system design and implementation, we intend to work closely with councils to embed a consistent, comparable and fit-for-purpose national evaluation framework to enable ongoing monitoring and evaluation of the effectiveness of interventions being implemented through the freshwater and resource management reforms. We expect this framework to be confirmed by the time implementation work begins, following enactment of the reform Bills.