A developer is proposing a large retail complex that will require both earthworks exceeding 500m³ and a new stormwater discharge system. The district plan classifies the retail use as permitted but the earthworks as restricted discretionary and stormwater as discretionary activities. What is the overall activity status for this proposal?
Correct Answer
C) Discretionary activity
Under Section 87B of the RMA, when a proposal involves multiple activities with different classifications, the overall status is determined by the most restrictive category. Discretionary activity status is more restrictive than both permitted and restricted discretionary.
Why This Is the Correct Answer
Option C is correct because Section 87B of the Resource Management Act establishes that when a proposal involves multiple activities with different consent requirements, the overall activity status follows the most restrictive classification. Here, the proposal includes discretionary activity (stormwater discharge), restricted discretionary activity (earthworks), and permitted activity (retail use). Discretionary activity status is more restrictive than both restricted discretionary and permitted activities, making the overall proposal a discretionary activity requiring full resource consent consideration.
Why the Other Options Are Wrong
Option A: Permitted activity
Option A is incorrect because while the retail use component is classified as permitted in the district plan, the proposal involves other activities requiring consent. Under Section 87B, you cannot treat the overall proposal as permitted when it includes activities requiring resource consent. The bundling rule means the most restrictive activity status determines the overall classification.
Option B: Restricted discretionary activity
Option B is incorrect because although the earthworks component is classified as restricted discretionary, the proposal also includes stormwater discharge classified as discretionary activity. Since discretionary status is more restrictive than restricted discretionary, the overall activity status must be discretionary rather than restricted discretionary under the Section 87B bundling provisions.
Option D: Non-complying activity
Option D is incorrect because none of the individual activities are classified as non-complying. The retail use is permitted, earthworks are restricted discretionary, and stormwater is discretionary. Non-complying activity status would only apply if one of the component activities was specifically classified as non-complying in the district plan, which is not the case here.
Deep Analysis of This Resource Management Question
This question tests understanding of the Resource Management Act 1991's activity classification hierarchy and bundling rules under Section 87B. When a development proposal involves multiple activities with different consent requirements, the overall activity status is determined by the most restrictive classification present. This principle ensures comprehensive assessment of environmental effects and prevents developers from avoiding scrutiny by separating interconnected activities. The retail complex involves three distinct activities: retail use (permitted), earthworks over 500m³ (restricted discretionary), and stormwater discharge (discretionary). The discretionary activity status is the most restrictive, requiring full consideration of all relevant matters without predetermined limitations. This bundling approach reflects the RMA's effects-based framework, recognizing that environmental impacts are cumulative and interconnected. Understanding this hierarchy is crucial for real estate professionals advising clients on development feasibility, timeframes, and costs, as discretionary consents involve longer processing times, higher uncertainty, and potentially more stringent conditions than permitted or restricted discretionary activities.
Background Knowledge for Resource Management
The Resource Management Act 1991 establishes a hierarchy of activity classifications: permitted, controlled, restricted discretionary, discretionary, non-complying, and prohibited. Section 87B governs situations where proposals involve multiple activities with different consent requirements. The 'bundling rule' requires the overall activity status to follow the most restrictive classification present. This prevents circumvention of consent requirements and ensures comprehensive environmental assessment. District plans classify activities based on their potential environmental effects, with earthworks and stormwater discharge commonly requiring consent due to erosion, sedimentation, and water quality impacts. Real estate professionals must understand these classifications to advise clients accurately on development feasibility, consent requirements, processing timeframes, and associated costs.
Memory Technique
Think of activity bundling like a chain - the overall strength is determined by the weakest (most restrictive) link. Just as a chain breaks at its weakest point, a development proposal's consent requirements are determined by its most restrictive activity component. Permitted activities are the strongest links, while prohibited activities are completely broken links that make the whole chain unusable.
When you see multiple activities in a question, immediately identify each activity's classification, then remember that the 'weakest link' (most restrictive activity) determines the overall consent requirement. Rank them: Permitted > Controlled > Restricted Discretionary > Discretionary > Non-complying > Prohibited.
Exam Tip for Resource Management
Quickly identify all activities in the proposal, classify each according to the district plan, then select the most restrictive classification as your answer. Remember the hierarchy: discretionary is more restrictive than restricted discretionary, which is more restrictive than permitted activities.
Real World Application in Resource Management
A real estate agent represents a client wanting to develop a mixed-use building with ground floor retail (permitted) and residential apartments above (restricted discretionary), plus new vehicle access requiring earthworks (discretionary). Despite the retail being permitted, the agent must advise the client that a full discretionary consent application is required due to the earthworks component. This affects project timelines, costs, and approval certainty, influencing the client's purchase decision and development financing arrangements.
Common Mistakes to Avoid on Resource Management Questions
- •Assuming the overall status follows the permitted activity component
- •Confusing restricted discretionary with discretionary activity classifications
- •Not recognizing that earthworks and stormwater often trigger consent requirements
Related Topics & Key Terms
Key Terms:
More Resource Management Questions
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What is required before starting construction of a new dwelling in New Zealand?
A LIM report will typically include information about which of the following?
Under the RMA, if a proposed activity is not specifically provided for in a district plan, what classification does it receive?
- → A property developer wants to subdivide rural land into residential sections. The district plan shows this area is zoned Rural. What type of resource consent would most likely be required?
- → What is the key difference between a building consent and a resource consent?
- → A homeowner receives a LIM report showing that previous resource consent was granted with ongoing conditions requiring annual monitoring reports. What does this mean for the new owner?
- → A commercial development requires both earthworks exceeding 500m³ and a new building over 10 meters high in a zone where the height limit is 8 meters. The district plan classifies earthworks as controlled activities and height exceedances as restricted discretionary activities. What consenting pathway is required?
- → Under the RMA, when can a territorial authority decline a controlled activity resource consent application?
- → A property owner receives a notice that their building work was undertaken without a building consent. What is this notice likely to be called?
- → What is the primary purpose of the Resource Management Act 1991?
- → Which document would you consult to determine the permitted activities for a specific zone in a territorial authority area?
- → Under the Building Act 2004, which type of building work typically requires a building consent?
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