On 12 May 2025 the Government introduced the Public Works Amendment (Critical Infrastructure) Bill 2025 (Bill) to the House, and it awaits its first reading. This aligns with the Government’s signalled timeframe for the Public Works Act 1981 (PWA) reform.

As discussed in our previous FYI (see here), Minister for Land Information Chris Penk announced this targeted amendment to the PWA, which seeks to accelerate the acquisition of land for critical infrastructure projects. This Bill demonstrates this Government’s focus on improving critical infrastructure to boost economic growth and productivity.

The amendments only apply to critical infrastructure projects set out in a Schedule comprising the public works projects listed in Schedule 2 of the Fast-track Approvals Act 2024 and Roads of National Significance.

The key points of the new process are set out below.

Environment Court replacement process – natural justice process

• Natural justice process: The Bill replaces the right of a landowner or person with an interest in land to object to land acquisition in the Environment Court with what is described in the Explanatory Note to the Bill as a “natural justice process”. The new process provides for written submissions to the Minister for Land Information or local authority responsible for the critical infrastructure project, with no opportunity for oral hearings.
• Notice of intention: Under the new Bill, Notices of Intention can only be issued if a project designation is in place and the land is deemed by the Minister / Local Authority as necessary for the project. The relevant entity must also provide the landowner with its reasoning as to why the land is required when issuing the Notice of Intent.
• Submission timeframes: As a pre-requisite to making a submission, the submitter must indicate to the acquiring authority that they intend to make a submission. Indication to submit must be made within 10 working days of receiving the notice, with a further 20 working days to submit. Extensions are possible but limited.
• Submissions response: The Minister or local authority must respond to submissions within 10 workings days of receiving them. Submitters then have the ability to respond back within 10 working days of receiving the Minister’s response. Again, extensions to this timeframe are possible but limited.
• Legal test: This process requires the Minister or local authority to have regard to every submission, and to matters consistent with those the Environment Court considers when dealing with an objection under the usual process in section 24.  This test applies both before issuing a section 23 notice of intention or making a recommendation or request under section 26 to take the land.
• Withdrawal: Submissions can be withdrawn, but only before the Minister’s consideration.

Compensation

• Payments: The Bill’s recognition and premium payment schemes are consistent with what the Minister previously signalled. However, notably, it appears that compensation for home-loss payments under section 72A(1)(a) of the PWA will remain payable under this scheme, but the $5,000 and $10,000 top-ups contained in section 72A(1)(a) and (b) are expressly excluded.
• Exceptions: Premium payments will not be available in every instance and there are specific exceptions where vacant possession is not provided and where the owner is a willing party to acquisition. Transfers between Crown bodies and local authorities are also excluded.

Order in Council

The Bill provides for two Order in Council processes.

• Compensation adjustments:  The first relates to the adjustment of compensation limits enabling percentages to be increased or decreased and compensation limits to be increased. Taking certain criteria into account, recommended changes must be considered necessary or desirable and are subject to public consultation. The financial limits can only be changed once every five years.
• Project descriptions:  The second addresses amendments to the project descriptions listed in schedule 2A of the Bill. However, it should be noted that these orders cannot be used to add additional projects to this schedule.

Māori land

• Protected Māori land: As anticipated, protected Māori land is excluded from the new process but is still eligible for additional payment incentives under the standard process, at the discretion of the Minister or local authority.

Scope

• Ambiguity clarified: We noted in our previous FYI that the scope of the Bill appeared somewhat ambiguous in terms of what projects would be captured under the umbrella of “critical infrastructure”. The Bill has confirmed its limited scope in the new schedule 2A, confining the Bill’s application to the roads of national significance and those projects led by a Crown agency or local authority listed in schedule 2 of the Fast-track Approval Bill.
• Ability to opt out: Agencies are able to opt out of the new process and use the standard process if they consider that taking into account time frames and costs it would be preferable to use the standard process.
• Review: The Bill provides for the new process to be reviewed three years after enactment to ensure the amendments are still fit for purpose.

Our experts

Our team of experts at Simpson Grierson has been following the PWA reform closely.

If you have any questions about these changes or would like help in preparing feedback on the proposal, please reach out to one of our experts who will be happy to assist. 

For further reading on our recent commentary on the reform, click here:

The Public Works Act Review - What you need to know

PWA Reform Update - What we know and what we are waiting for

PWA Reform Update - Short and Sharp or Sweeping? Māori land acquisition added to the scope of review

PWA Reform Update: Targeted review turned overhaul

PWA Reform Update: Further PWA reforms announced aimed at facilitating critical infrastructure projects

The Public Works Act Overhaul is Complete – PWA Reform Update 

Special thanks to Lucy Scottwood for her assistance in writing this article.