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Planning for the wine industry

Abstract

The wine industry is a major agricultural industry that is characterised by a growing range of operational activities.  The nature and scale of these operations have the potential to not only affect adjacent land uses, but also to be affected by them. 

This guidance note identifies and discusses five key resource management issues and related effects that are associated with the wine industry, including:

The guidance note focuses on the approaches applied in district plans to address these resource management issues and identifies relevant examples.  Approaches applied in regional plans to address particular issues, such as the use of agrichemical sprays, water allocation and use, and waste management are also discussed. 

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Guidance note

Introduction

This guidance note was initiated by New Zealand Winegrowers, in partnership with the Ministry for the Environment and Local Government New Zealand, as a way of promoting best practice to deal with the complex range and scale of resource management issues connected with the wine industry.  Development of the guidance note involved three distinct stages:

The primary issues associated with the wine industry were identified through discussions with local authority practitioners and members of New Zealand Winegrowers; these were confirmed at the ‘Planning for the Wine Industry’ conference held in November 2006.  Draft guidance material was subsequently prepared and circulated for comment to conference participants.  Based on these comments, a revised draft was prepared and considered by a group of planning practitioners, local authority and winegrower representatives at a workshop held in May 2007.  Feedback from workshop participants was used towards a final draft that was peer reviewed by the Quality Planning editorial panel and three experienced local authority practitioners.

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Issues

Because of the complex nature and scale of effects that are either created by or have an impact on the wine industry, the range of issues associated with the industry is broad.  The five key resource management issues identified by local authority practitioners and industry representatives are:

1. Multiple land-use activities on one site (vertical integration)

Vertical integration is referred to in this guidance note as a process where multiple land-use activities associated with growing, making and selling a primary product occur on the same rural site.  In the wine industry, this occurs where the primary production processes associated with winegrowing are supported by ancillary winemaking and retail operations, located on the same site.  Additional ancillary operations can include cafes, restaurants and accommodation.  The effects of these activities may extend over a wider area when large events and festivals take place.  The ancillary operations associated with a vineyard are often more wide-ranging than for other primary production processes such as orchards, given the tourism potential associated with the wine industry.  People increasingly want to visit the place of origin of particular wines.  For this reason, the amenity associated with the buildings used for ancillary winegrowing operations is usually more important.  Vertical integration is increasingly common as it improves financial viability for winegrowers.

Noise, carparks and traffic-related effects arising from winemaking activities, restaurants and cafes on a site may be inconsistent with the existing rural amenity of the surrounding area.  In rural areas, concerns about the visual appearance and amenity of buildings, parking areas and signage may arise.  Another common concern is hours of operation.

2. Reverse sensitivity

Reverse sensitivity applies to situations where a potentially incompatible land use is proposed to be sited next to an existing land use.  Where this occurs within a rural area, for instance, it is reasonable to expect that existing rural activities will be able to continue to operate within the environmental limits provided for in the district plan. Winegrowing operations and associated ancillary operations may involve some activities which have effects beyond the site boundaries that may not be able to be completely avoided or mitigated.  While reverse sensitivity issues are not specific to the wine industry, the expansion of vineyard operations and rural-residential lifestyle blocks within the rural environment may increasingly result in conflict (eg, amenity standards expected by new rural-residential dwellers could place constraints on existing permitted rural activities such as winegrowing).

Current concerns largely revolve around noise, agrichemical use, odour, glare/lighting, and the visual effects of winegrowing operations.  These issues are also inherently relevant to rural subdivision.

3. Water allocation and use

Water is important for the wine industry in terms of availability and allocation, and the security of supply for irrigation and processing.  This issue also applies to other primary production industries.  Where resources are limited and demand is high, there may be limited availability without consideration of reallocation, augmentation (reservoir storage and release), or physical or legal transfer.  Some winegrowing areas have an adequate supply, but increasingly many are seasonally limited as demand for water exceeds availability. 

For winegrowing, water allocation and use issues are particularly relevant to irrigation, processing and frost-protection.  These activities create differing demands on water resources.

Councils have the ability to preferentially allocate water (ie, by activity class through rules in regional plans and granting of water permits). These decisions can have a pronounced effect on winegrowing as they influence:

Water availability and allocation is a major issue in its own right and is not widely covered within this guidance note.  Refer to the Planning for Water Allocation Guidance Note for further details.

4. Worker accommodation

The predominantly rural-based location and the labour-intensive and seasonal nature of winegrowing operations create a demand for new and existing buildings to accommodate workers.  This need also applies to other primary production industries, such as fruit processing.  With the current low unemployment rate, this issue is more important as there is an increasing dependence on workers from outside the region to get through seasonal peaks. 

In some situations, legislation requires worker accommodation to be provided (eg, the Recognised Seasonal Employer (RSE) scheme allows approved employers to bring in seasonal workers from the Pacific Islands over a number of seasons.  The scheme requires employers to take responsibility for the workers’ ‘pastoral care’, which includes making sure they have appropriate accommodation).  Providing worker accommodation on-site creates opportunities for primary production industries to better manage their workforce and to enhance employee relationships. 

The visual character and appearance of buildings constructed or refurbished for worker accommodation require consideration, particularly in terms of their contribution to both existing and future character of an area.  Close attention to integrated design is required if building developments are to contribute to and avoid dominating existing valued characteristics (eg, rural amenity characteristics). Consideration also needs to be given to the amenity effects of large-scale accommodation complexes in rural areas. 

Related resource management issues include:

5. Waste management

Waste resulting from crushing and winemaking activities is typically both solid and liquid waste. The issue of waste management equally applies to all production industries.  If not properly managed, potential effects of waste can include:

The disposal of solid and liquid waste is controlled through regional and district plans.  Application of good practice, along with good design, is also required to help minimise the potential for winery waste to adversely impact on the environment. 

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Approaches to manage identified issues associated with the Wine Industry

District and regional plans currently apply a variety of approaches to managing the issues associated with the wine industry, often using different techniques for different aspects of winegrowing.  These variations are often due to such factors as its influence on the social history of a local community (eg, the length of time the industry has been there), climate, topography, geology, ecology, landscape and infrastructure.

While plans focus on regulatory measures such as objectives, policies and methods, various non-regulatory measures can be, and are, used in conjunction with plan provisions.  There are also a number of non-regulatory mechanisms specific to the wine industry that can be used in conjunction with planning mechanisms or included within existing regulatory frameworks. 

Regulatory approaches

Objectives and policies

Current district plans generally rely on one of the following approaches to manage the identified winegrowing-related issues:

Special area identified within the district plan along with a separate chapter that includes specific issues, objectives and policies

This approach has the potential to work well in areas with an extensive wine industry or clusters of winegrowing activities.  The concept of identifying and providing for special-character areas may be particularly useful in light of the complex and often unique scale of the issues facing the wine industry, including vertical integration and reverse sensitivity.  Matters that should be considered include the scale of existing operations in the area and whether a special area is required to manage the effects of these operations on competing rural uses and vice versa. 

For an example of this approach, refer to the Te Mata Special Character Zone in the Hastings District Plan. (PDF 180 KB) This approach recognises the importance of established winegrowing activities and makes specific provision for the separation of viticulture and rural residential development.

Reference to winegrowing through generic objectives, policies and methods

This approach recognises the diversity of an area and the range of activities that contribute to its environment and economy.  However, in areas where winegrowing is a major industry it may give insufficient weight to the nature and scale of industry effects and the methods needed to manage them.  Depending on the scale of the wine industry in a particular city or district, it may also be too general and provide insufficient direction to effectively address local resource management issues relevant to the wine industry.

An example of how this approach could be applied would be to incorporate a number of objectives, policies and methods specific to winegrowing into the plan provisions that relate to the rural areas within a city, district or region. 

For example, the Proposed Wairarapa Combined District Plan (PDF 419 KB) includes a Rural (Special) Zone within the Rural Area (section 4).  This zone covers those areas where intensive viticultural and horticultural activities are facing pressure from sporadic urban growth, particularly residential development.  The purpose of the zone is to recognise that unplanned residential intensification is generally inappropriate in these parts of the rural environment, and that development limitations may need to be imposed to avoid future problems.  The Rural Zone (PDF 83 KB) (and Plains Zone (PDF 256 KB)) of the Hastings District Plan also recognises that many intensive horticultural, viticultural and agricultural activities may be suitable within its rural areas.  The district plan states that activities establishing in the Rural Zone (and Plains Zone) need to recognise existing, accepted amenity levels, which reflect the effects of the operation of existing activities in adjacent zones.

Rules

A number of district and regional plans include rules to manage the effects of the wine industry, but often in conjunction with voluntary and industry-based Codes of Practice and other methods.  These are usually applied on either a district/region, or a catchment/special area basis, and establish the status and thresholds of activities associated with the industry. 

The status and thresholds that an activity may trigger are dependent on such factors as:

A standards-driven approach is usually associated with permitted activities, whereas a qualitative approach is generally applied to discretionary activities. However, plans may also include quantifiable outcomes within discretionary provisions, to provide guidance as to what outcomes are acceptable or unacceptable. The suitability of a proposed activity is often assessed by looking at the nature of existing activities in the vicinity and determining whether any restrictions on the proposed activity are required to avoid or minimise reverse sensitivity issues. However, in some instances it may be entirely inappropriate for the proposed activity to be located in close proximity to existing operations.  In such situations, incompatibilities between the existing and proposed activities may mean that resource consent is denied.  For example, resource consent applications for residential dwellings near Auckland and Christchurch international airports were refused due to the potential for reverse sensitivity from adverse noise effects (Gargiulo v Christchurch City Council (Environment Court, C137/2000, 17 August 2000); and Independent News Ltd and Auckland International Airport Limited v Manukau City Council (2004) 10 ELRNZ 16).

District plans have traditionally relied on various permitted activity standards to control development and activities.  This situation is changing with some plans now placing greater reliance on discretionary processes.

In making this shift, district plans will need to provide greater direction through their objectives and policies, including developing clear guidance about what qualities and values are important, and the pattern of activity that is anticipated (eg, the acceptability of non-rural activities in rural zones).

For example, policies and assessment criteria outlining the development qualities sought in an area could be used to manage the effects of winegrowing developments where multiple land uses are proposed on the same site.  Key considerations could include such factors as urban design, layout and setbacks.  The Te Mata Special Character Area (PDF 180 KB) in the Hastings District Plan, for instance, includes policies and assessment criteria that relate to commercial activities that are dependent on rural resources such as winegrowing.  Where a resource consent application for such an activity is lodged, the council will consider, amongst other matters, the benefits to the district that could be derived from its tourist potential.

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Resource consent applications

Resource consent applications should include the information outlined in Schedule 4 of the RMA.  District and regional plans may also contain information requirements for resource consent applications.  The Proposed Wairarapa Combined District Plan (PDF 419 KB) contains a detailed section on the information requirements for resource consent applications depending on the activity status and nature of the proposal (section 26).  For example, a resource consent application for winegrowing operations needs to include details of hazardous substances to be used and stored on-site, including those to be used for spraying purposes.  A resource consent application for an ancillary winegrowing operation should include a traffic report assessing the potential carparking demand arising from the proposed activity. 

For examples of the information included in resource consent applications involving the wine industry, relevant councils should be contacted (eg, Hastings District Council; Napier City Council; South Wairarapa District Council).

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Resource consent conditions

Once a resource consent has been granted, its conditions determine how a proposed activity is managed and controlled over time.  For example, conditions of consent for winegrowing could include controls on the operation of crop protection devices; conditions for ancillary operations could cover carparking requirements and hours of operation. Concerns regarding reverse sensitivity can result in more restrictive resource consent conditions for new, potentially sensitive, activities. In relation to a proposed subdivision, conditions could relate to the permitted density of subdivision, size of allotments, nominated building platforms, and minimum buffer distances from boundaries. No complaints covenants are frequently included by Councils as conditions of resource consents where this has been agreed to by the relevant parties.  The resource consent will either require the parties to enter into a no complaints covenant or may contain the full text of the covenant to be entered into. For further discussion, refer to the guidance note on Conditions of a resource consent.

For examples of consent conditions with no complaints covenants, refer to the examples from the following councils:

Hastings District Council – Decision relating to an application for land use consent (PDF 33 KB)
Published by Hastings District Council - June 2006
Decision relating to a notified application for land use consent. Provides example of the use of no complaints covenants within resource consent conditions.

Rodney District Council – Resource Consents Hearings Panel (PDF 75 KB)
Published by Rodney District Council - April 2005
Minutes of a meeting of the Resource Consents Hearings Panel. Provides example of the use of no complaints covenants within resource consent conditions.

For examples of consent conditions, refer to:

Tasman District Council: Report and Discussion of the Hearings Commissioner D W Collins, under authority delegated by the Tasman District Council (PDF 146 KB)
Published by Tasman District Council - December 2006
Hearing report for application lodged by Kaimira Ventures Ltd relating to a proposed winery with a “Cellar Door” retail outlet and associated discharge and water use permit.

Non-regulatory approaches

Non-regulatory mechanisms for managing the effects of the wine industry include a range of techniques. 

Non-regulatory tools are often used to support and extend district or regional plan approaches (eg, as a method to implement objectives and policies), or to help guide and explain plan provisions (eg, GROWSAFE© Code of Practice in the New Zealand Standard NZS8409:2004 Management of Agrichemicals (PDF 135 KB)). They are also developed and used by the wine industry itself to inform and improve practice (eg, the Sustainable Winegrowing New Zealand Programme). 

Many non-regulatory tools, such as design guides and industry guidelines, have limited legal weight in the development assessment process, although they may be relevant in assessing consent applications. However, councils are increasingly incorporating such tools into their resource management planning framework by specifically referring to them in the objectives, policies and methods of implementation.  For example, in the Rural Zone, the Hastings District Plan (PDF 83 KB) specifically identifies the use of industry codes of practice as a method of implementing objectives and policies, and can be used as a guideline for setting consent conditions (section 5.5).

Useful non-regulatory tools that could be referred to in district or regional plans include:

Sustainable Winegrowing New Zealand Programme
This is a voluntary initiative introduced by New Zealand Winegrowers.  The programme provides a framework to assist winegrowers in improving all aspects of their operational performance in terms of environmental, social and economic sustainability.  It also provides a ‘best practice’ model for vineyard and winery operations and gives a high-level assurance that sustainable practices have been used.

New Zealand Management of Waste By-Products Code of Practice for Wineries
This code provides guidance to winemakers on cleaner production and sound environmental practices including waste management and disposal. Sustainable Winegrowing New Zealand is currently leading a process to revise it.

Growsafe requirements
Growsafe offers accreditation programmes to help agrichemical users adhere to the requirements of New Zealand Standard NZS 8409:2004 Management of Agrichemicals (PDF 135 KB) .  This is the recognised industry standard for primary producers and for ground and aerial contractors.  It provides practical advice on the safe and effective use of agrichemicals to control weeds, pests and plant diseases.

Provision of information to the industry
New Zealand Winegrowers encourage regional grower associations to include reminders in their newsletters of member responsibilities (eg, noise mitigation during frost).  They also host seminars to promote improved vineyard management through the Focus Vineyards programme. 

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Best practice examples

Hastings District Plan

The Hastings District Plan identifies the Te Mata Special Character Zone (PDF KB) and contains a separate chapter that includes winegrowing issues, objectives and policies.  The Te Mata Special Character Zone recognises the established wine industry activities in the area and makes specific provision for the separation of viticulture and rural residential lifestyle activities. 

Further examples can be found in the Issues and Approaches sections of the guidance note.

The New Zealand Winegrowers Background Issues Paper (PDF 329 KB) also includes a range of regulatory and non-regulatory approaches used by local authorities to manage the effects of wine growing.

RMA provisions

The provisions of the RMA that are particularly relevant to the wine industry include:

Also relevant is the First Schedule of the RMA – Preparation and change of policy statements and plans by local authorities.

Other legislative requirements that impact on winegrowing activities include:

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Case law

Fraser Shingle Ltd v Hastings District Council (W7/92) – the rare wine-growing qualities of the land were recognised and provided for by allowing an appeal against the use of the land as a shingle aggregate quarry.

Upper Clutha Environment Soc v Queenstown Lakes District Council (C012/98) – the Court agreed that locating a residential subdivision in close proximity to an existing vineyard would have an adverse effect on an outstanding landscape and create reverse sensitivity issues.

Wakatipu Environmental Society Inc v Queenstown Lakes District Council (C135/97) – the Court ruled that regardless of a particular landscape’s potential for grape growing, 14 proposed residences could be built in a way that would have a no more than minor adverse effect on the landscape.  However, a large visitors’ accommodation building was rejected.

Tutton Sienko and Hill v Canterbury Regional Council (W100/95) – the Court held that the ability of existing water permit holders to extract water would not be adversely affected by the granting of a water permit to irrigate a 142ha vineyard.

Dunstan and Ors v Western Bay of Plenty District Council (A166/02) – the Court upheld a consent for a wind machine, subject to it being a four-bladed fan, as it was the best practicable option in cost and noise mitigation terms to counter unwanted frost effects. The Court found that frost fans are an emergent, efficient and increasingly recognised form of horticultural management.

Isola Estates Ltd v Auckland City Council  (W042/06) – the Court held that a boutique hotel was appropriate in a rural area, particularly due to the ‘synergy’ between the hotel, events centre, surrounding wineries and an informal wine trail in the area.  The wineries were considered to be an accepted part of the buffer between urban areas on Waiheke Island and contributed in a real way to enabling people to provide for their social and economic wellbeing in terms of section 5(2).

Tasman Action Group Inc v Tasman District Council & Ors (C96-07) - the Environment Court held that the use of red shade cloth in the Tasman region was not harmful to the environment and only required a certificate of compliance, and not a resource consent.

Dunstan v Western Bay of Plenty District Council [2002] BCL 1049 -  the Court found that given the limited number of occasions on which a wind fan would operate during the year, the level of noise omitted would not be unreasonable.  This case involved an appeal made against resource consent granted for a wind fan at a kiwifruit orchard in Tauranga due to noise.  The Court amended the conditions of consent to provide that the wind fan not be used for more than ten nights between August and October, and restricting the engine speed to 1800 revolutions per minute.

For further discussion on case law relating to reverse sensitivity (PDF 46 KB) issues and no complaints covenants (PDF 33 KB) click on each link to refer to Quality Planning research.

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Related guidance notes

The following guidance notes are relevant to the wine industry:

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Relevant publications

New Zealand documents

Draft New Zealand Winegrowers Sustainability Policy
Published by New Zealand Winegrowers – March 2007
The draft sustainability policy aims to have all New Zealand grapes and wine produced under independently audited sustainability schemes by vintage 2012.  It also recognises sustainability as a strategic long-term issue for the on-going success of the wine industry.

Winegrowers’ Legal Guide (PDF 506 KB)
Published by Bell Gully - September 2007
This guide is a reference tool for all participants in the wine industry. It identifies the key legislative and regulatory requirements that need to be considered when establishing a winery or vineyard and distributing the product.

Winegrowers of New Zealand Management of Waste By-Products Code of Practice for Wineries
Published by Montgomery Watson NZ Limited – September 2004
This code of practice was commissioned by Winegrowers of New Zealand to guide winemakers on cleaner production and sound environmental practices including waste management and disposal.  It is currently being reviewed to ensure that it continues to reflect international best practice.

New Zealand Standard  8409:2004 Management of Agrichemicals (PDF 135 KB)
Published by Standards New Zealand – September 2004
Provides targeted practical guidance on the handling and use of agrichemicals.  Its aim is to ensure that practices followed are safe, responsible, and effective, with minimal adverse impact on human and environmental health.

Good Practice Guide for Assessing and Managing Odour in New Zealand
Published by Ministry for the Environment – June 2003
Assists those involved in odour management and communities affected by offensive odours.  It provides guidance on how to determine when an odour is objectionable or offensive, and how to reduce the potential for odour emissions to cause problems.

Effective and enforceable consent conditions
Published by Ministry for the Environment – June 2001
Provides useful supporting information for those involved in drafting consent conditions.

Managing Rural Amenity Conflicts
Published by Ministry for the Environment – February 2000
Identifies the amenity issues that commonly concern rural communities and describes a number of typical examples of rural amenity conflicts.

International websites

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Current challenges in practice

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Acknowledgements and editorial comments

This guidance note was initiated by New Zealand Winegrowers, in conjunction with the Local Government Group of the Ministry for the Environment and Local Government New Zealand.

The note was prepared by Mark St Clair and Rachel Pinson from Hill Young Cooper Limited, and was further shaped and reviewed by:

The Ministry for the Environment would also like to thank the following people for their peer review of this material: