This decision was an appeal, under s.92A(4) RMA, against the decision of Palmerston North City Council ("the council") to decline the application for subdivision and land use consents made by PN Industrial and Residential Developments Ltd ("PNI"). To enable the council to decide who may be affected by the application, it had requested more information from PNI about the subdivision proposal, under s.92. PNI responded that it was unable to provide the information, and the council subsequently declined the application under the procedure in s.92A(3) on a non-notified basis and without making a decision on whether notification should have occurred.
The Court noted that the case raised apparent deficiencies in the processes arising out of s.92 and 92A. It commented that due to the process followed by the Council in not publicly notifying the application (nor documenting a decision not to carry out such notification), no other parties had been given the opportunity to participate in the consent process, nor in the subsequently appeal process. This combined with the Council not holding a hearing to consider the application, meant 'the Court was effectively being asked to exercise a first instance jurisdiction on a resource consent application '.
The Court noted its powers and obligations when dealing with an appeal under s.92A(4) were to decide if the council had sufficient information to enable it to determine the application, and the Court was then either to decline the appeal, or hear and decide the application. The Court identified a concern with there being no opportunities for involvement of any parties to the proceedings other than the applicant and the council. This difficulty arose in such a hearing of the appeal of an application which had not been notified and no notification decision made.
The Court stated that it was not prepared to proceed with the appeal without giving interested persons the opportunity to participate. It subsequently arranged a process to enable those parties potentially affected by the application to have the opportunity to consider whether or not they wished to be heard by the Court. The Court made directions pursuant to s.279(1)(d) RMA that copies of the appeal documents were to be served on potentially affected persons to enable them to join the proceedings if they wished. The council was directed to file a memorandum with the Court identifying persons whom it considers may possibly be affected by the application.
