Infrastructure Bill

We reported on this bill in August 2009 shortly after its introduction to the House on
5 August 2009.

The Infrastructure bill is primarily designed to better organise dealings between those responsible for transport corridors (road and rail) and other utility operators wishing to get access to those corridors to install and maintain their equipment, lines and pipes.  It also makes some changes to the New Zealand Railways Corporation Act 1981 and repeals the Affordable Housing: Enabling Territorial Authorities Act 2008. 

The area of greatest interest has been the part relating to roads and access for utilities to install and maintain their equipment, lines and pipes.  The main thrust is to provide a consistent approach for each class of utility operator and for all local authorities and government agencies responsible for the corridors.

Since its introduction in August 2009 the Infrastructure Bill has made steady progress.  After its first reading on 25 August 2009 it was referred to the Transport and Industrial Relations Select Committee which reported on 10 November 2009.  The amendments proposed by the Select Committee were mainly rewordings to clarify the intention in various places, but very few amounted to significant changes in practice. 

Since then there have been two supplementary order papers (SOP), the first providing for the Bill to be divided into four parts and the second which contained some amendments.  The Bill underwent its second reading on 24 March 2010.  It therefore appears likely that it will be passed shortly in its present form. 

The amendment in SOP 115 of interest to local authorities relates to the conditions which may be imposed on the utility operator by any local authority or other person having a jurisdiction over a road, and in particular their ability to impose conditions increasing amenity values.

One of the functions of this Bill is to ensure that the Electricity Act 1992 and the Gas Act 1992 will both be amended to make it clear that these utility operators may only exercise their powers to access and work on a road in accordance with such reasonable conditions as may be prescribed by the local authority or other body or person having jurisdiction over the road.  This already applies to telecommunications utilities. 

This strengthens the position of the local authority.  However, the Bill has also made it clear that only in limited circumstances may the local authority impose a condition requiring the utility operator to increase amenity values.  SOP 115 amends the condition allowing an increase in amenity values to situations where "the work to be done is in an area identified in a district plan as an area in relation to which, under the district plan, there are particular considerations, or rules or requirements, relating to amenity values". 

Local authorities may now consider their district plans with this change in mind and possibly look to amendments designed to allow these conditions where they see a significant cost saving could be achieved.  If they do not, even where they are permitted to require work to be done, they will have to carry the cost of this work.

The other point to note is that the Select Committee has made it clear that there will be proper consultation before any code is implemented to govern Utilities working on roads under what will become the Utilities Access Act 2010.

This opens the door to those affected to negotiate a code which sets rules which permit the better coordination of the work carried out by utilities.  In fact, as there will no longer be room for local arrangements, this will need to become the new focus. 

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Last updated: 15 April 2010

The contents of this publication are general in nature and are not intended to serve as a substitute for legal advice on a specific matter. In the absence of such advice no responsibility is accepted by Brookfields for reliance on any of the information provided in this publication.