Source: New Zealand Government
Ka nui te mihi kia koutou.
Kia ora, good morning, talofa, malo e lelei, bula vinaka, da jia hao, namaste, sat sri akal, assalamu alaikum.
It’s so great to be here and I’m ready and pumped for 2025.
Can I start by acknowledging:
Simon Bridges – CEO of the Auckland Business Chamber.
Sponsors Kiwibank represented by COO Elliot Smith.
Mayor of Auckland, Wayne Brown
Sir Peter Gluckman who has been leading our science sector review.
And in year where we are going for growth, it’s important to have a team who you know can do the job and deliver for Kiwis. So, it is wonderful to have Nicola Willis, our Minister of Finance and Economic Growth, and so many of our National Ministers and MPs here with us today.
I’m here today to talk about the economy – and almost nothing else.
It’s not that public safety isn’t important – because it is, and we’ve made very positive progress on it so far with more visible policing in our cities and tougher policing on gang activity already making a real impact.
And it’s not that health or education aren’t important – because they are.
Whether it’s our record investment in health, ensuring so many Kiwis who waited so long for new cancer drugs, are now receiving treatment.
Or our fresh approach to literacy and numeracy, ensuring Kiwi kids master the basics.
Our Government has made big changes to improve the quality of public services – and make sure Kiwis get better outcomes over time.
But as far as I’m concerned, going for growth is without a doubt priority number one.
Right now it’s still a tough time for many Kiwis.
High inflation and high interest rates pummelled families, and the wider economy leading to the biggest recession since 1991.
Last year we put in place a platform for growth, thanks to our exceptional Minister of Finance, Nicola Willis. We worked hard to get the cost of living under control and we’ve made a lot of progress.
It’s thanks to Nicola’s efforts that we are already seeing the dividend of careful spending and responsible economic management, even if so many Kiwis are still doing it so tough.
Wages are growing faster than inflation, food prices are rising slowly, and cost pressures – like the Auckland Regional Fuel Tax – have been sucked out of the economy.
Interest rates are falling and the Reserve Bank is forecasting more relief on the way soon.
For anyone with a mortgage, that means real savings – around $200 per fortnight for someone looking to re-fix a $500,000 mortgage.
And just as we campaigned on, the tax relief we delivered last year means Kiwis are keeping more of what they earn, for the first time in fourteen years.
These are the results of bringing the kitchen counter economics – that every family, small business, and farmer lives by – back to Wellington.
Spending carefully. Investing in what matters most.
And constantly looking for a better deal to deliver even better results.
I’ve seen first-hand the difference those results have made for so many New Zealanders in the last year.
The young families in Christchurch and Hastings getting real relief from FamilyBoost, after years of battling to keep up with the cost of living.
The Mum and Dad in Avondale and Hamilton battling to hold on just that little bit longer, before they re-fix their mortgage and see real relief every fortnight.
It all adds up to real financial relief for Kiwis who have struggled so much, for so long.
There is still a long way to go. Because getting back to normal isn’t enough.
Kiwis deserve more than a stable job and stable prices. We all want a future to hope for.
More than ever, I believe that New Zealand is the best country on Planet Earth, and I want to work tirelessly so that we achieve our potential.
I want New Zealand to be a country of aspiration, ambition, and opportunity.
But to meet that moment and to make that vision a reality, we have to go for growth.
It’s just not up for negotiation anymore.
If we want a better standard of living, we have to go out and make it happen.
Now, change isn’t easy. But it is so worth it, to once again allow us to take on the best in the world, and win.
That change is already underway. We’ve already got a year of substantive, structural change under our belts.
We’re cracking down on gangs and restoring order in our towns and cities, with more foot patrols and more visible policing.
We are rebuilding excellence in education with a whole new approach to literacy and numeracy and world-leading resources hitting classrooms this year, making sure your kids master the basics.
We are delivering modern, reliable infrastructure through major investments in our Roads of National Significance, and water reforms that just work, without confiscating local assets and imposing mandatory co-governance.
We are restoring rights and responsibilities.
Yes, we’ll support Kiwis when times are tough, but we expect you to play ball, too. That means actively looking for work if you’re on welfare.
And it means bringing back consequences for KO tenants that abuse their neighbours.
We are making major investments in health – to the tune of $17 billion in last year’s Budget.
That means more funding for emergency departments and the surgeries we all rely on, and a massive package of new cancer treatments and other medicines designed to support Kiwis when they need it most.
We are getting kids out of emergency housing – more than 1,700 children out of motels and into homes so far under our government.
And there’s so much more.
Fast-track, stopping wasteful spending, RMA reform, stopping ram raids, new trade deals, backing farmers, banning cellphones in class, FamilyBoost, making foreign investment easier, increasing speed limits, and keeping councils focused on the basics.
And we’re just getting started.
It’s been a massive year of change and reform and I am confident we are now on the road to recovery.
But recovery isn’t enough. We have to go for growth.
Driving economic growth is critical for improving our quality of life – strengthening local businesses, lifting incomes, and creating opportunity across New Zealand.
A growing economy means giving Kiwis more choices – the confidence to find a new job or hire a new staff member, to open a business, or start a family.
A growing economy means we can deliver better infrastructure – quality roads, so Kiwis can get where they need to – faster.
A growing economy means better, more responsive public services.
A growing economy means more money for hospitals – so we can have more surgeons and doctors, more medicine, faster access to treatment, and higher quality care when you need it.
A growing economy means more money for schools – with better resources, better classrooms, better technology, and more attention and opportunity for your children and grandchildren.
A growing economy means safer and more vibrant towns and cities – with growing businesses, more parks and libraries, higher quality homes, and more of them.
Above all – it’s that overwhelming sense that better days lie ahead.
That if you’re prepared to work hard, this country is an outstanding place to make it happen.
Making rockets, milking cows, making coffee, baking bread, building homes – or whatever gets you up in the morning.
Growth means there’s a place for you.
But too often, when it comes to economic growth, we’ve slipped into a culture of saying no.
It’s always easy for someone to find a reason to get in the way and find a problem – but we need to shift our mindset and embrace growth.
Take the Port of Tauranga’s plans to expand.
Its critical infrastructure for industries like forestry, kiwifruit, and dairy.
They just want to get on and do business – making an even bigger economic impact in the Bay of Plenty and New Zealand.
More ships, more exports, more growth, more investment, and more jobs.
But instead, they’ve been stuck for years, just fighting for permission to grow so they can get on with it.
Or Eden Park.
Kiwis spend thousands flying across the Tasman to see massive concerts, go out to bars and restaurants, and boost the Australian economy, when back home Eden Park sits empty because of council event rules.
Now in fairness, the Council has increased the limit, but I think they should seriously consider abolishing it completely.
There’s always a reason to say no, but if we keep saying no, we’ll keep going nowhere.
We need larger ports. We need more concerts.
We need more jobs, more investment, more innovation, exports, and talent.
The bottom line is we need a lot less no and a lot more yes.
Economic growth is going to influence every decision I take this year. Let me talk you through a few key areas we are progressing.
Starting with taking competition a lot more seriously.
I want a New Zealand where businesses – big and small – thrive.
And make a profit. And pay high wages. And hire more people. And invest in growth.
Kiwis do well when flourishing businesses are competing hard.
But that competition isn’t always happening.
Last year the OECD said that insufficient competition was an important factor in driving New Zealand’s long standing productivity woes.
The OECD was right when they said New Zealand’s distance from other markets makes domestic competition doubly important.
Too often we see reports of Kiwis getting a raw deal because of a lack of competition. In banking, energy, retail, construction and groceries.
I’m up for action.
Corporate showdowns too often look and feel like a staged wrestling match. Big names. Big talk. But no damage done.
Last year we made some announcements designed to take action.
We are powering up KiwiBank to take on the Aussie banks.
We are cracking open the construction industry to competition from overseas products.
And we are unshackling the energy sector, enabling fresh investment in wind, solar, hydro, geothermal, and natural gas – so we can flood electricity into a market badly in need of more generation.
But I know we can go much, much further – which is why this year, I will be driving my Ministers to do exactly that – and nothing is off the table.
But just driving for more competition isn’t enough, we need to make it easier to get things done.
So, second – we need to repeal and replace the Resource Management Act.
Fast Track will supercharge economic growth, enabling major investments and growth in energy, transport, aquaculture, and a range of other sectors – but we can go further.
The RMA is fundamentally broken and it needs to be replaced. Just ask anyone building a house or any farmer trying to get on and grow their business.
I back builders and I back farmers to make a major contribution to growth in the New Zealand economy, and practical rules that let them do it will play a big part in unleashing growth.
At a minimum, my expectation is we introduce legislation to Parliament this year to do exactly that.
Next, we have to fix our broken health and safety rules.
I wouldn’t be shocked if cones were New Zealand’s fastest growing industry. They’re everywhere.
Wayne Brown has done a great job fighting back here in Auckland, and Simeon Brown fought hard against them in his time as Minister of Transport too.
But they are just a symptom of a bigger problem.
Our broken health and safety rules layer on costs and slow down activity – often without making Kiwis any safer.
This year we will crack on and make big changes.
Fourth, mining needs to play a much bigger role in the New Zealand economy.
It’s easy in politics to say you want a sovereign wealth fund like Norway, or much higher incomes like Australia – but it’s much harder to say you want the oil and mining that pays for it.
In regions like Taranaki and the West Coast there are big economic opportunities – higher incomes, support for local business and families, and more investment in local infrastructure.
The minerals sector will also be critical for our climate transition – EVs, solar panels, and data centres aren’t made out of thin air.
I want to see mining employ more Kiwis and power more growth in the economy and I’m adamant we must take further steps to make that a reality.
Fifth, tourism has a massive role to play in our growth story – and I want the government to work with the sector to make that happen.
We have a relentless network of tourism operators – each of them utterly driven to compete for our national brand and their local businesses.
Clearly, COVID was a big disruption.
But, our tourism industry is still world class, and I think government can be doing more to make their life easier and enable opportunities for growth across the country.
My expectation this year is we do exactly that.
We also need to make life a lot easier for farmers – and back them to compete with the world.
Farmers are the heart of our economy. When they’re doing well, it benefits every single Kiwi. And I back them.
Core to our RMA reforms will be making it easier to be a farmer – with more time spent milking cows and less time filling out paperwork asking for permission.
I also want New Zealand scientists working on high yield crop variants, and solutions to agricultural emissions that don’t drive farmers off their land and risk the very foundation of the New Zealand economy.
Enabling gene technology is about backing farmers. It is about embracing growth. It is about saying yes, instead of no.
Our political opponents can continue the scare campaigns of the early 2000s. But, we will back the scientific community, push on, and get that law passed this year too.
There will be plenty of pro-growth reform this year – only some of which I have talked about today.
But we’re also getting on with the job now – and today I have announcements to make in two areas that will make a real difference in our economy to unlock growth, lift Kiwis’ wages, and boost investment.
I want a country with more start-ups, more IPOs, more investment, higher incomes, and whole ecosystems of growth and innovation.
I want the best ideas and the best investments from offshore making a difference here at home – creating the companies and opportunities Kiwis need to thrive.
And to make that growth happen, we need to kick on and deliver change.
So – first, we’re taking action to make New Zealand a much more attractive destination for investment.
If you’re a major international investor, New Zealand is just one of 195 countries all competing for your money and your ideas.
Yes, we want growth – but there are plenty of other countries that want growth, too – the competition is fierce.
The solution is competing harder – making New Zealand a much more attractive place to do business and to make big investments.
One of the first things we did in Government was to streamline proposals with the Overseas Investment Office which has drastically improved processing times and made New Zealand a more predictable destination for investment.
Substantial changes to the Overseas Investment Act will also be critical, to encourage more investment to flow into our economy.
But solving the legal barriers isn’t enough.
That’s why, modelled off the success of Ireland and Singapore, I can announce today we have agreed to establish Invest New Zealand as the Government’s one-stop-shop for attracting foreign direct investment.
Invest New Zealand will roll out the welcome mat – streamlining the investment process and providing tailored support to foreign investors.
The objective is to increase capital investment across a range of critical sectors – like banking and fintech, key infrastructure like transport and energy, manufacturing, and innovation.
Leading the agency in his new capacity as Minister of Trade and Investment will be Todd McClay. And after a massive year getting trade deals done offshore, I’m excited to see what he can achieve attracting investment back here at home.
Second, we are going to make major changes to increase the role of science and technology in the New Zealand economy.
We have incredible scientists working in our universities and Crown Research Institutes right now – whether that’s in the lab, on their laptops, or in the field.
But sadly, the system they work in is hamstrung by outdated settings that leave our economy lagging behind.
If we’re serious about the role science and technology can play to promote growth and investment – adding value to our products and services – we need a sharper focus on commercialisation, with rapid access to ideas and investment from overseas, and clearer priorities set at home.
Today, I can announce changes to achieve exactly that vision.
First, Cabinet has agreed to shake up our Crown Research Institutes, establishing four Public Research Organisations – focused on bio-economy, earth sciences, health and forensic sciences, and advanced technology.
Each are expected to have a sharp focus on commercialisation – harnessing Kiwi talents for maximum economic impact – higher incomes, more investment, and more opportunities to get ahead.
I am particularly excited about the establishment of an advanced technology institute, focused on the commercialisation of cutting edge technology, like AI, quantum computing, and synthetic biology.
New Zealand should operate at the cutting edge – unlocking the jobs and opportunity that come from world-leading research and innovation.
But, secondly, while having good institutions is important, incentivising scientists to make major breakthroughs – and then commercialise them – is critical.
Right now, scientists see too few of the proceeds of their own research. Too often, any resulting intellectual property is swallowed up by universities and effectively shelved with any potential commercialisation often an afterthought.
I want us to commercialise our brilliant ideas, so that our science system makes us all wealthier. Because we are going for growth.
Some universities offshore have totally reformed their IP settings, so researchers see a greater commercial share of their own research.
We’ve agreed to implement a similar approach here – making that a reality across our universities and science sector.
There are further changes, including the establishment of an Advisory Council, which will set research priorities and ensure funding is targeted for maximum impact.
The prize – if we can get it right – could be game-changing for New Zealand.
In Denmark – a country like New Zealand of around five million people – recent pharmaceutical breakthroughs have delivered a modern economic miracle – creating a tidal wave of growth, employment, and opportunity.
I want to thank Judith Collins for her work designing these changes.
Judith’s work will mean more breakthroughs, more discoveries, more start-ups, more IPOs, and many more opportunities for Kiwis to compete on the world stage.
And I am utterly confident the incoming Minister Dr Shane Reti will do an excellent job picking up where she left off.
Like so many New Zealanders, my ancestors came to this country in search of a better life.
They came as bakers, miners, stonemasons and farmers.
Hotelkeepers and fishermen.
They came in search of opportunity and ambition.
Above all, they came in search of a place to call home.
And like so many new New Zealanders today, they found that home – and they discovered what all of us here today know to be true.
That New Zealand is a country with unlimited potential.
A country with a promise – that if you work hard – wherever you come from and wherever you’re going – you can get ahead.
I want our kids to grow up in a country where it is totally normal for them to go and work in a company that puts rockets into space. Or a cutting edge health science or agri-tech company.
Or that they can create those companies for themselves.
I want our kids to know that New Zealand is where the opportunities are – not Australia or the UK.
And not just that, but that our education system taught them the basics brilliantly and set them up not just to get those jobs, but to excel at them.
We’re not there right now – but we so can be. We can take on the world, and we can win.
Hope is on the horizon and our potential is within our grasp.
Achieving our potential means keeping up the fight – for prosperity, opportunity, and ambition.
For the bakers and miners that came before me – and all the children and grandchildren that will come long after we are gone.
I won’t be knocked down by that fight.
All I can offer is my drive, my determination, and – above all – my unshakeable belief that New Zealand’s best days are ahead of us.
2025 will be another massive year for New Zealand – and I am obsessed with doing everything it takes to unleash the growth, innovation, and investment we need to thrive – because Kiwis deserve nothing less.
We’re going to keep delivering significant substantive change – change that will have an immediate impact in 2025, and that our kids will thank us for in 2035.
It’s that vision that keeps me moving forward – bring on 2025.
Thank you.
