Nick Smith. Pic: NZPA

Wellington, June 11 NZPA - Environment Minister Nick Smith wants a select committee considering Resource Management Act (RMA) changes to add a penalty system for councils who fail to process consent applications quickly enough.

Dr Smith today presented a survey report on local authorities' administration of the RMA to Parliament's local government and environment select committee, which is considering a bill amending act.

The report found while 43 councils had completed applications faster in 2007/08 than the previous year, a sizeable 37 councils' performance had dropped. Three councils were unchanged and two did not have both years' data.

"This report tells a sorry story of delay, frustration and unnecessary costs for more than 16,000 homeowners, businesses and farmers whose consents last year were not processed within the legal timeframe," Dr Smith said.

He called on the committee to change the bill to:

* limit situations where councils could grant themselves extensions to complex or controversial applications;

* insert a requirement for regular reporting on consents rather than it being done through the survey reports. This would ensure data was consistent and comparable and was delivered -- this year Rangitikei District Council failed to give its data;

* insert a default penalty system. The bill allows for councils to develop a system but Dr Smith said there should be one for councils that did not.

Councils were happy to charge penalties when rate payments were late, Dr Smith said.

"If it's reasonable for ratepayers to have to do things on time, its good enough for councils to do things on time for ratepayers."

Dr Smith had previously promoted councils having to waive fees if they processed consents late.

Today he said that was crude, and recommended a 1 percent penalty per day over the deadline, which would give councils motivation to complete them before new applications.

"That would be my preference."

Dr Smith said there were a range of reasons for non compliance but he said the underlying problem was a lack of focus on the economic cost of delays.

There was also a problem with the quality of applications and the ministry needed to do more to provide better information so requirements were meant.

Dr Smith wrote to the eight worst councils and to Rangitikei for failing to provide data.

Environment Canterbury (Ecan) recorded only 29 percent of resource consent applications processed on time in 2007-08 -- down from 72 percent in 2005-06.

Auckland City Council did not have a good record, processing only 45 percent on time, down from 52 percent.

Others in the group included Whakatane District Council, Carterton District Council, Waimate District Council, Far North District Council, Manukau City Council, and Westland District Council.

MPs asked about the super city proposal and how that might impact on consents in Auckland, considering the region's poor record in the survey.

Dr Smith expected the councils to reply to his letter with suggestions on how timeframes could be improved.

He said in Auckland some consents had to be obtained from the city and regional council.

He said having a single council would remove some doubling up of applications to regional and local city councils.

While some Auckland councils were "not flash" in the survey, Dr Smith said ECan was at the "bottom of the class".

"We should take into account the fact that they have a very complex issue around water...(but) even in the area of consent categories other than water they are still performing a whole lot worse than the other regional councils."

ECan director of planning and consents Don Rule said it had reviewed and improved its consent processes since the survey.

"In the 11 months to the end of May 2009, 67 percent of consents receipted during the year were processed in compliance with statutory timeframes. We want to get even better."

The council processed more consents than any other regional councils.

Councils received about 52,000 RMA applications a year. Some councils had massive workloads compared to others, for example the Chatham Islands had four applications.

On a positive the note the report found close to 80 percent of consents that were required to be monitored had been, and of those 84 percent complied with consent conditions.