Environmental agencies have backed the Government's plans to reform the Resource Management Act (RMA).

But they have also warned that trading off long-term environmental sustainability for short-term economic gain may ultimately damage the $29 billion a year farming and tourism industries.

National campaigned on speeding up RMA decisions and Environment Minister Nick Smith today said an advisory group -- part of National and ACT's support agreement -- would be announced before the end of the week.

Initial legislation to streamline the Act would be introduced in February and a second tranche dealing with water allocation and other more complex issues would be introduced later.

The apparent backing for the Government's proposed reforms came in a briefing to Dr Smith on environmental sustainability issues from 10 government agencies including the Environment Ministry, the Department of Conservation and the Agriculture Ministry.

The advice said problems with the RMA were slowing key decisions particularly in regard to major infrastructure.

Those problems included:

* broad rights of public participation and the allowing of multiple appeals;

* varying ability of councils to apply the RMA;

* cumbersome council planning processes;

* lack of national policy and central direction to councils.

"This suggests a need for reassessment of the balance between public participation and appeal rights on the one hand and efficiency, effectiveness and responsiveness on the other."

But the briefing paper warned against trading off long-term environmental sustainability for short-term economic gain.

That could lead to New Zealand being shut out of overseas markets and require expensive future remedial work.

It said a healthy natural environment was vital to New Zealand's farming and tourism industries which together accounted for about a sixth of the country's economy.

"Running down New Zealand's natural capital would eventually damage the economy," it said.

"In the longer run, higher environmental standards and efficiencies are consistent with -- and are likely to be essential for -- economic growth."

The briefing listed the RMA, water allocation and quality issues and meeting climate change obligations as critical issues.

Dr Smith said the briefing paper showed there was a "strong consensus ... for significant reform" of the RMA.

"It is significant that these 10 agencies have recognised that there are practical problems under the current Act that are not meeting either New Zealand's economic or environmental needs."

He said in previous years officials had vigorously dismissed calls for change.