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The Government is bringing together Kiwibuild and Housing New Zealand under one mega housing authority to drive urban development, with the power to override local councils.

The Housing and Urban Development Authority (UDA) would lead the Government's large-scale urban development projects while remaining the state landlord, Minister for Housing and Urban Development Phil Twyford said.

The authority, made up of Housing New Zealand and its developer subsidiary HLC and the Kiwibuild unit, would have wide-ranging powers to speed up development.

It will be able to override existing council designations, cut the planning and consenting process time from five years to one year, build and change infrastructure, change bylaws and even reconfigure green spaces.

But Twyford emphasised that the Government would be working alongside councils and there were checks and balances in place.

He says the agency's a way to create thriving communities.

"This new agency will cut through the red tape and will be a way that central Government can work with councils and private sector to build not only housing but well- planned communities."

National's Judith Collins is dismissing the plans for a new housing super-ministry, as a temporary band-aid.

The Housing Minister says a new Crown agency will be established next year, consolidating Housing New Zealand and KiwiBuild under one roof.

Collins says Phil Twyford's announcement simply recognises the fact the Resource Management Act isn't working properly.

"Really, what they should be doing is whole sale reform of the resource management act and the planning rules and they way that they are applied, but it is a stop gap measure and they don't have the ability to put through the reforms that should be made."

Collins says it wouldn't be needed if Resource Management Act reforms had been backed by Labour when they were in opposition.

But Twyford says that's not the case.

"When we were in Opposition, Labour offered to support any proposals that would have made houses more affordable and speeded up housing urban development through changes to the RMA. National never took us up on that offer."

Twyford says he hopes the National Party will back the new agency as there are similarities to something they proposed when they were in office.

"I would hope that the Opposition would support this policy but it is actually quite similar to a policy that their Cabinet signed off, and Nick Smith as the former Housing Minister consulted on all through 2017."