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According to Burrell et al. (2006), the RMA also affects the way businesses think about making new investments:

“they may tailor their business to avoid notified consents, they may invest in a new type of technology or purchase it at a different time, or they may locate their business in a particular region where councils are known for being helpful.” (Burrell et al., 2006, p. i).

Decision making behavior can create a lack of certainty (Burrell et. al., 2006) and cause stress (Firth et al., 2001).

a. Investment Strategy

As businesses, farms would also be affected in their investment decision making behavior and other business decisions. Although it would not be an easy decision to change their location, farmers may find it more convenient to adapt their practices to avoid notified consents.

b. Uncertainty

make decisions” (Burrell et a., 2006, p. 42). They explain that lack of certainty can arise from the:

“uncertainty as to what must be submitted with an application and the process followed, the length of time before an application will be processed, whether an application will be processed as non-notified or notified, whether any parties will object, whether the application will proceed to a hearing or Court, the chances of the application or appeal being successful, whether the legislation or local plan will be amended over time, the types of conditions that will be imposed, and whether a similar application will be accepted again in future or in a another region.” (Burrell et al., 2006, p.43)

Farmers may also act rashly to guard against the possible introduction of new legislation (Norton & Reid, 2013).

The development of environmental regulations has caused uncertainty for New Zealand farmers. Harcombe (2007) suggests that section 6 of the RMA (1991), protecting matters of national importance, and its interpretation by the community, environmental groups and councils, erodes the farmer’s security of private title. With physical property or land being an important part of any farm business, the protection of rights in property is a particular concern to farmers. Farmers’ property rights are the “formal and informal rules that govern access to and use of property” (FFNZ, 2014a, p.1). They include the “rights to determine the use of property, income from property, disposal of property, and the exclusion of others from property” (FFNZ, 2014a, p.1). The Resource Management Act 1991 does not provide for compensation. Federated Farmers NZ suggest that where taking of property is justified in the public interest there should be compensation (FFNZ, nd).

Interpretation of the environmental legislation by all interested parties can be conflicting and therefore create uncertainty for the farmer. Increasingly scientists have been unable to settle debates of interpretation between the various interested groups, leading to more uncertainty (Boxelaar & Paine, 2005). Because the regulations, particularly the RMA, are developed at a regional level without direct guidelines from the government, there is uncertainty on how these regulations will be interpreted and enforced (Melyukhina, 2011). Examples of this are shown in the section ‘Causes of Impacts’ (section 2.4.3). There is also the added uncertainty of

the costs that may be incurred (Melyukhina, 2011).

In the OECD Environmental Performance Review of New Zealand (2007) it is stated:

“The central government has so far provided little statutory guidance in the form of national standards and policy statements to local authorities regarding

implementation of the RMA and monitoring of environmental conditions.” (OECD Environmental Performance Review of New Zealand 2007, p.17)

“Differences in technical capacity, knowledge, skills and issues among local authorities translate into differences in environmental management, and businesses complain that the regulatory playing field within the country is not level. (OECD Environmental Performance Review of New Zealand 2007, p. 17 & 18).

c. Stress

Job related stress among farmers is an international issue. Simkin, Hawton, Fagg, &

Malmberg (1998) found that one of the three most common stressors with English and Welsh farmers was problems arising from the effects of new legislation and regulations. The results of a postal survey in southwest English by Booth and Lloyd (1999) showed that one of the three most common stressors was coping with new legislation (Firth et al., 2001).

Deary, Willock, and McGregor (1997) found that the three most stressful items among farmers who attended agricultural shows in Scotland and England were ‘filling in government forms’, ‘bad weather’, and ‘adjusting to new government regulations and policy’ (Firth et al., 2006). Similar to this Scottish/English survey where four of the top seven stressors were to do with government bureaucracy, Firth et al. (2006) found that in their New Zealand survey the 8th highest stressor was ‘adjusting to new government regulations and policies’ and that four of the top 12 stressors related to government bureaucracy, namely ‘complying with health and safety legislation’, ‘complying with environmental regulations’, ‘adjusting to new government regulations and policies’, and ‘dealing with the workers compensation’. Although on a small scale, a dozen Waikato farmers cited the pressure that comes from Government in terms of the environment as one of the three things that worked against them the most (Sposer, 2011). In Greer’s (2008) report, analysing stresses and pressures on high-country farmers in the South

Island (20 Otago farmers, eight from the Mackenzie Basin, six from Canterbury and two from Marlborough), only 17% identified the demands of the RMA as a major constraint. However the majority discussed present or future impacts and some mentioned the limitations they felt compliance with the RMA placed on their farming practices. One such issue, particularly from the Queenstown Lakes District farmers, was the lack of understanding by the public of

farming practices. This was leading to pressure from authorities who were imposing

restrictions which were inconsistent with normal farming practices and good environmental management.

Pressures in life can result in suicide and Statistics New Zealand figures show that suicide rates are higher in rural areas (16 per 100,000 people) than in urban areas (11.2 per 100,000 people). Between 2007 and 2014, 169 farmers have committed suicide (Hutching, 2014). Two of the stressors that lead to depression and suicide, according to Federated Farmers of New Zealand (2014d), are mounting compliance costs and increasing local and central government demands.

2.4.2.4 Benefits

The purpose of the RMA is “to promote the sustainable management of natural and physical resources” ” (Ministry for the Environment, 2011). This in itself is a benefit as the planet and all of society depend upon healthy biological and physical systems. Other benefits suggested by Burrell et. al. (2006) are listed below:

x Innovation & Growth

This was not a compelling finding but there was some evidence that by “stimulating environmental or process improvements” firms could “cut costs or gain a competitive advantage” (Burrell et al., 2006, p.44).

x Project fits better with environment

Some firms changed their projects before they started and mitigated more appropriately.

A better understanding of local community needs and views often results in a project that better suits the community.

x Public relations

Positive communication with the community can result in those communities being more willing to accept a project.

x Satisfaction from better environmental outcomes

Firms want to be good corporate citizens and get satisfaction from achieving better environmental outcomes.

x Time saving from non-notified or permitted activity

Time and costs are saved from consents that are non-notified or permitted activities especially if the consent process is fast.

x Flexibility

Firms find it advantageous if the council willingly meets and discusses an application during the consent process, talks through possible problems and are willing to be flexible.

x Niche for consultants

The extra work engendered by the RMA is a benefit to the consultants that are needed.