Earthquake-prone building and seismic risk management review

The Government has announced an extensive review of the management of seismic risk in existing buildings. The purpose of the Review is to ensure seismic risk in existing buildings is being managed effectively and in a workable, proportionate way.

A Steering Group with an independent chair will provide oversight of the Review. MBIE will play a key role in carrying out the Review, but a number of key components will be delivered externally, including to ensure the right level of technical input and other expertise informs the Review.

The terms of reference for the Review can be accessed here:

At a high level, the Review will include:

• considering society’s expectations and willingness to pay to mitigate the risk of injury and death in an earthquake, and for improving the resilience of buildings over time
• recommending regulatory responses that balance life safety risks against the costs of regulation and impact on private property owners
• identifying barriers to meeting regulatory requirements and the types of support or incentives that would help building owners to better manage seismic risk
• considering how outcomes from seismic risk requirements align with broader Government objectives.

There will be opportunities for input during the Review and we would like to hear a range of views. Any public consultation will be notified on the MBIE website.

Extension of earthquake-prone building remediation deadlines

As previously agreed by Cabinet, remediation deadlines for earthquake-prone buildings that had not lapsed as at 2 April 2024 will be extended for four years, to allow time for the Review and any subsequent changes to take place. The Bill to give effect to the extension had its first reading on 8 August and is expected to be passed by the end of 2024.

Timeline

The Review is the first of three key stages to improve how seismic risk is managed in existing buildings. The three stages and their estimated timeframes are shown below. We are currently at Stage 1.

Stage 1: Review of seismic risk management in existing buildings

2024-mid 2025

• Appointment of steering group members and chair
• Examination of current state of earthquake-prone building system, including cost-benefit analysis
• Summary and assessment of future state options
• Final report summarising findings and high-level recommendations drafted and provided to Government
• Final report published.

Stage 2: Options to deliver the recommendations of the Review

Mid-2025 to 2026

• Detailed development and assessment of options to deliver on the recommendations accepted by the Government at Stage 1
• Discussion document released for public consultation
• Final Government decisions for changes to be made via legislative amendment and/or non-regulatory measures.

Stage 3: Legislative process (if required) and implementation

Commencing in 2026

• Drafting, introduction and passage of Bill (if any)
• Implementation of any regulatory and non-regulatory measures.

Cabinet papers