New Zealand Shifts Earthquake Building Policies, Saves $8.2 Billion

Recent changes to New Zealand’s earthquake-prone building system are expected to save the nation approximately $8.2 billion in demolition and remediation costs, according to Prime Minister Christopher Luxon. The revised policy entirely removes Auckland and Northland from the existing scheme, a move aimed at alleviating the financial burden on building owners.

The previous earthquake-prone building (EPB) system inadvertently included structures that did not pose significant risks. This led to substantial expenses for building owners, with strengthening costs often ranging from hundreds of thousands to several million dollars. Many rural areas and small towns have visible signs of derelict buildings, such as churches and town halls, which contribute to local economies and community identity but remain vacant due to high remediation costs.

The government’s new approach replaces the current New Building Standard (NBS) ratings with a framework that focuses solely on buildings that genuinely threaten safety in medium and high seismic zones. This adjustment aims to strike a better balance between risk and economic viability.

Revised Regulations Impacting Communities

Under the new regulations, unreinforced masonry buildings under three storeys located in small towns will no longer require remediation or warning notices. However, building owners must secure the façade before their properties can be removed from the earthquake-prone register. This change is anticipated to significantly reduce the financial strain on local communities.

The estimated savings of $1.8 billion for New Zealand’s towns and regional areas marks a substantial boost for local economies. In particular, Auckland is set to benefit from savings of around $4.5 billion. These funds can now be redirected towards productive investments, fostering economic growth and job creation in the region.

The changes will allow businesses to allocate resources more effectively, whether through expansion efforts or by hiring additional employees. Prime Minister Luxon emphasized that the new policy enables business owners to make their own decisions regarding financial investments, ultimately benefiting the wider economy.

The shift in policy reflects the government’s commitment to improving the safety regulations surrounding buildings while also supporting economic development across New Zealand. The reform is positioned as a critical step towards revitalizing communities that have long struggled with the burdens of outdated building regulations.