Building and Construction Minister, Simon Watts says newly passed legislation will ensure New Zealand’s earthquake-prone building system is appropriately focused on risk to life, while saving communities billions in remediation costs.
Under the new legislation, which was unanimously passed in Parliament, around half of all buildings currently designated as earthquake-prone are expected to be removed from the system.
“Today we are delivering significant reform that will save Kiwi building owners and the New Zealand economy a staggering $8.2 billion,” said Mr Watts.
“Expensive and often unrealistic remediation costs that are disproportionate to risk threaten buildings becoming derelict. Instead, we’re enabling that money to be invested elsewhere. To grow businesses, jobs and the economy.”
For buildings that remain designated as earthquake-prone, remediation requirements will be more targeted, helping reduce costs and complexity while ensuring life-safety risks are addressed, the Minister said.
“For many communities, particularly smaller towns, meeting the current requirements has been a significant challenge. The reforms take a more proportionate approach to managing seismic risk while ensuring high-risk buildings continue to be identified and addressed.”
High-risk unreinforced masonry buildings and vulnerable multi-storey concrete buildings in high and medium seismic zones will continue to be subject to earthquake-prone building (EPB) requirements, and councils will retain the ability to identify serious seismic risks that may have been missed.
Updated seismic zones, based on the latest seismic scientific knowledge, will take effect the day after Royal Assent, with buildings in Auckland, the Chatham Islands and the upper North Island low seismic zone being removed from the earthquake-prone building system entirely. All existing earthquake-prone building designations will be removed for these regions.
Parts of coastal Otago and Stewart Island that were previously in a low seismic zone will move to a medium seismic zone.
Notwithstanding this move, building owners will still be better off. Under the new system, low risk concrete and wooden buildings will no longer have EPB status, while remaining EPBs will have more cost-effective remediation requirements.
“The remainder of the reforms will come into force on 1 July 2027, giving councils, building owners, and the wider sector time to prepare. Guidance materials are currently being developed to support implementation and are expected to be shared for public consultation later this year,” Mr Watts says.
“This is about fixing the basics for a better working system. By focusing effort on the buildings that present the greatest risk to life, the reforms will deliver safer communities, smarter regulation, and avoid disproportionate and unrealistic costs.”
The Ministry of Business, Innovation and Employment (MBIE) will publish guidance and supporting materials ahead of implementation to help councils and building owners navigate the transition to the new system and are planning to publicly consult on these materials before the end of the year.
Councils will retain a limited ability to identify earthquake-prone buildings after identification timeframes have passed, subject to consultation with building owners and agreement from MBIE.
More information can be found on the MBIE website: https://www.building.govt.nz/about-building-performance/all-news-and-updates/changes-for-earthquake-prone-buildings.
