Prime Minister Christopher Luxon delivered his State of the Nation address on Thursday, focusing on economic growth as the cornerstone of his government’s strategy for the year ahead.
In his speech, Luxon stated, “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.”
“But as far as I’m concerned, going for growth is without a doubt priority number one.”
Luxon criticised the current “culture of saying no,” which he believes is stifling progress and innovation across various sectors.
One example highlighted by Luxon is the Port of Tauranga and its ambitious plans to expand its operations, aiming to increase its capacity for larger vessels and enhance its contribution to the Bay of Plenty and the broader New Zealand economy. The expansion is expected to lead to more ships, increased exports, greater investment, and ultimately, more jobs for the region.
However, despite these potential benefits, the port has faced delays, spending years navigating bureaucratic hurdles to obtain the necessary permissions for its expansion plans.
Luxon also mentioned Eden Park and emphasised how Kiwis are spending thousands to attend events across the Tasman while Eden Park sits empty and underutilised due to strict council event regulations.
“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.”
The Prime Minister also considered competition as a significant issue, citing banking, supermarkets, construction, and energy as critical industries that are experiencing a deficiency in competitive dynamics.
For Luxon, “just driving for more competition isn’t enough; we need to make it easier to get things done.” Reforms to the Resource Management Act will also be crucial for the government’s growth agenda, along with addressing New Zealand’s flawed health and safety regulations. He also outlined his intentions to boost mining.
“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 businesses 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.”
Tourism also plays a crucial role in the country’s growth narrative, with Luxon urging the government to collaborate with the sector to realise its full potential. The new Minister for Economic Growth, Nicola Willis, is said to prioritise increasing tourism numbers as a key element of New Zealand’s economic strategy.
Simplifying processes for farmers and emphasising the commercialisation of scientific advancements would also be necessary.
“Farmers are the heart of our economy. When they’re doing well, it benefits every single Kiwi. And I back them,” Luxon said.
“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.”
“While having good institutions is important, incentivising scientists to make major breakthroughs—and then commercialise them—is critical,” he added.
“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.”
Luxon ended his speech with a hopeful note for New Zealand.
“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.”
“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.”