PWA Expert Richard Rodden Weighs In on Government’s Proposed Financial Incentives for Compulsory Land Acquisition

Richard Rodden, our specialist in land and property law, has been featured in Farmers Weekly, exploring the significant impact of the Public Works Act on landowners. The article breaks down what’s at stake when land is acquired for public infrastructure projects and how landowners can navigate this process with confidence.

Public Works Act looms large over landowners

The all-powerful Public Works Act is likely to feature in the lives of more rural New Zealanders as the government ramps up its infrastructure programme in coming months.

Richard Rodden, property law expert and Public Works Act (PWA) specialist and partner with Tavendale and Partners, said there is a lot happening in the PWA space.

This includes the recent release of 149 projects added to the Fast-track Approvals Bill to address the infrastructure deficit, and the review of the PWA itself to make it easier to build critical infrastructure in New Zealand.

Having worked on the other side of the legal fence for The Property Group assisting Crown and councils on acquisitions for infrastructure, he appreciates the sensitivities that go with such a powerful Act.

The PWA gives the government the ability to acquire land from private landowners to build or develop public infrastructure projects. The PWA outlines the process that must be followed to ensure the rights of private landowners are considered and protected, including the payment of compensation for any land acquired.

Rodden has dealt extensively with rural landowners impacted by the previous government’s efforts to upgrade rail links, particularly with landowners affected by the Marsden Point Rail Link and the rail stations project south of Auckland.

“But we are now seeing the government’s priority change to roading. This includes the likes of the Brynderwyn Hills highway, the Cambridge to Piarere expressway, and the Woodend bypass in Canterbury.”

He said the fast-tracking of projects aims to enable the PWA aspect of the consenting process to occur more quickly. Engagement by the Crown on projects like the Woodend bypass and Cambridge to Piarere expressway has commenced and negotiations are getting underway.

The government-initiated PWA review was for a piece of legislation Rodden described as “not particularly sexy”, but one that unless was used regularly, was full of legal nooks and crannies making it tough to follow.

“And the legislation is becoming quite archaic. There is a lot of discussion around reform of the RMA which came into law in1991, but the PWA was passed 10 years before that. Since then, we have had a new Property Law Act, a new Land Transfer Act and a new Contracts and Commercial Law Act so it is only right that the PWA is also reformed.”

He said the PWA matters because it provides the Crown with the greatest of powers. That is to enable the compulsory acquisition of private property.

The Act contains some clear conditions around timing and expectations for negotiations with landowners.

Once a landowner is notified about a land requirement for acquisition, the Crown has an obligation to negotiate in good faith for three months, after which the affected landowner can object through the Environment Court.

“The fact that land is being acquired for a public work does not affect the land’s value or the amount of compensation to be paid. The value of your land will be based on the amount the land would be expected to be sold for if sold on the open market. The value does not include the potential public work that will be done to the land.”

Additional compensation on top of that value can amount to as much as $50,000.

His advice to clients is to engage as early as possible when notified, and often the landowner’s legal team will work to maintain the momentum the Crown’s first notice initiates.

“I think there will be a few landowners across the country already who have received a letter, or request for a meeting with an accredited negotiator for the Crown. I have enormous respect for the valuers and experts involved.

“It’s a pretty tough job having these conversations with landowners, many who may have been on their land for generations.”

Read the full article here:
Public Works Act Looms Large Over Landowners