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The purpose of the Resource Management Act 1991 is to promote sustainable management
of resources and to control adverse environmental effects. This is achieved through
the controls exercised by regional and district councils, via their planning documents
and through the resource consent process and enforcement procedures.
The Act applies to any “person” who wishes to use or develop a natural
or physical resource to which the Act relates – e.g. land, coastal marine
areas, rivers, water and air. This includes individuals, companies and associations
of any kind. If your company is convicted of an offence under the Act, directors
and members of management who either authorised or knew about the offending act
(and failed to take reasonable steps to prevent it) are also likely to be liable.
Directors and employees of companies are liable under the Act regardless of the
liability of the company. They cannot take a passive role in terms of their environmental
responsibility, nor be indemnified by the company for any prosecution under the
Act. There are significant penalties for breaches with the maximum penalty for companies
being a $200,000 fine, and if the offence is a continuing one, $10,000 per day.
Individuals, in addition to being fined, can also face prison sentences of up to
two years.
There are also various other enforcement mechanisms under the Act such as abatement
notices, enforcement orders and infringement notices. Enforcement action is usually
taken by either regional or district councils, but can also be taken by adjacent
or affected landowners.
A breach of the Act can have a significant impact on a company’s business,
corporate profile and management, in addition to the risk of personal prosecution.
To minimise risks, your management and staff need to be fully aware of the responsibilities
imposed by the Act and need to monitor compliance at all times.
Lessons
Lesson 1 > Introduction to Environment Law
Lesson 2 > Resource Consents
Lesson 3 > Environmental Obligations under the RMA
Lesson 4 > Environmental Offences
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