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Public Works Act 1981

Compensation - Additional compensation

72E: Adjustment of compensation payable under section 72 or 72C

You could also call this:

“The government can change how much money people get when their land is taken”

The Governor-General can change the rules about how much money people get when the government takes their land. They can do this by making an Order in Council if the Minister recommends it.

The Minister can suggest increasing the amount of money people get in different situations. They can also change the percentages used to calculate the money.

Before the Minister suggests these changes, they need to think about a few things. They need to consider why people get this money, how much houses and land usually cost, how prices have changed, and what other countries do in similar situations. The Minister also needs to ask the public what they think about the changes.

The Minister can’t suggest changes too often. They have to wait at least 5 years after the law first started, and then they can only suggest changes every 5 years.

When the Governor-General makes these changes, it becomes a type of law called secondary legislation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7237258.

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72D: Circumstances in which compensation must not be paid under section 72C, or

"When you can't get money for land taken by the government"

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73: Assistance to purchase dwelling, or

"Extra money to help you buy a new home if the government takes your house"

Part 5 Compensation
Additional compensation

72EAdjustment of compensation payable under section 72 or 72C

  1. The Governor-General may, by Order in Council made on the recommendation of the Minister, amend section 72, 72A, or 72C by doing any or all of the following:

  2. increasing the compensation limit in section 72(1) and (1B):
    1. increasing the compensation limits in section 72A(1)(a) to (c):
      1. increasing or decreasing the percentages in section 72C(2)(a) to (c):
        1. increasing the compensation limits in section 72C(2)(b) and (c) and (3).

          1. The Minister must not recommend the making of an Order in Council under this section unless the Minister is of the opinion that it is necessary or desirable to do so having regard to the following:

          2. the purposes of the compensation payable under sections 72 and 72C (including the differences between the acquisition of land that includes the owner’s home and the acquisition of land that does not include the owner’s home):
            1. national average land and house sale prices:
              1. the Consumers Price Index (all groups) published by Statistics New Zealand or, if that index ceases to be published, any measure certified by the Government Statistician as being equivalent to that index:
                1. the level of solatium or similar compensation payable in comparable circumstances in jurisdictions outside New Zealand that have similar property rights and land acquisition regimes:
                  1. changes to the matters referred to in paragraphs (b) to (d) since the compensation limits and percentages were last changed:
                    1. comments received in response to public consultation under subsection (3).

                      1. Before recommending the making of an Order in Council under this section, the Minister must publicly consult about the proposed changes.

                      2. An Order in Council cannot be made under subsection (1)—

                      3. until after the expiry of 5 years from the date of commencement of Part 3 of the Resource Legislation Amendment Act 2017; or
                        1. more frequently than once every 5 years.

                          1. An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                          Notes
                          • Section 72E: inserted, on , by section 195 of the Resource Legislation Amendment Act 2017 (2017 No 15).
                          • Section 72E(2)(c): amended, on , by section 107(1) of the Data and Statistics Act 2022 (2022 No 39).
                          • Section 72E(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).