Christopher Luxon
Minister, Ministerial Services
Minister, National Security and Intelligence
Prime Minister
Permanent linkI hope you all had very good weekends. I was very pleased to attend the Sika Show down in Hamilton on Saturday alongside Todd McClay, who was there in his capacity as Minister for Hunting and Fishing. What was very impressive was he had arrived that morning from the GCC having completed the trade deal, was there on Saturday and then on yesterday morning flew out to China, so he’s been working incredibly hard.
But I did actually just want to touch briefly on what Todd has achieved in his capacity as Trade Minister because last week, after 18 years, Todd McClay officially concluded trade negotiations with the Gulf Cooperation Council on behalf of the New Zealand Government, having reopened them—those negotiations, actually—just in February this year. And as a market, the six-nation GCC block is the ninth-largest economy in the world. The trade deal is the highest-quality deal the GCC has done to date and its first with a major agriculture exporter. It delivers duty-free access for 99 percent of New Zealand’s exports over 10 years, and when combined with our recently concluded UAE agreement, 51 percent of our exports to the region will be tariff-free from day one. New Zealand‒GCC trade is worth about $3 billion annually, with New Zealand exporting $2.6 billion in the year to June 2024. We expect this to grow quickly, and as with any trade deal, once in place, barriers are removed and trade instantly increases by the very fact that exporters are confident in their market access.
Diversifying our export markets is all part of our plan to grow Kiwi opportunities and to boost the economy. Successfully concluding a trade agreement with the GCC has been a longstanding ambition for successive Governments for almost two decades, and I’m incredibly proud and excited that we’ve been able to seal the deal and move it on. It is a major achievement and testament to how hard our Government, and particularly our Trade Minister Todd McClay, has been hustling to secure and boost trade opportunities for our Kiwi exporters.
As you know, the state of our economy, the cost of living and the growth of incomes and opportunities relies on a range of factors, and growing New Zealand’s trade relationships is obviously one of them. We also need to spend responsibly, cut red tape and restore confidence to the business section so that we get the low-inflation environment needed for official cash rate reductions and ultimately lower our mortgage repayments for Kiwis. I know that for many this relief can’t come soon enough, and I look forward to more household budgets easing in the coming months as mortgage rates continue to drop and mortgage holders roll over to a lower rate.
In the short term, I’m very proud to lead the first Government in 14 years to have delivered tax relief for hard-working people, and know how sorely this is needed for many as we approach the holiday season. Family Boost claims have now been open for a month and I’m pleased that relief of up to $75 per week is landing in eligible families’ bank accounts, allowing them more choices for what they do with their money. Around 100,000 households are estimated to be eligible, with 33,000 families receiving their first payment so far, and we expect that number to continue to rise, and we also just encourage all eligible parents and caregivers to register and to make the claim.
Another issue many Kiwis are drawing their attention to at this time of the year is education, and many parents are planning for new uniforms or stationery and doing what they can to prepare their kids for a new class and a new year level, or a new school even. High school students are swotting up on NCEA exams, including level 2 maths, which will be sat tomorrow morning, and I just want to formally wish all those students the very, very best for the next few weeks. Education is a priority for this Government and also for me, and it’s not just because the future of our economy relies on today’s kids turning up to school and getting the skills that they need to succeed, but because I believe that young people should have more opportunities to get ahead through education than the generations that went before them, and I don’t believe this has been the case in recent years.
The level of achievement in New Zealand is not acceptable to my Government and you will have already heard us about several of our changes to turn these results around: all primary and intermediate schools teaching an average of an hour each of maths, reading and writing; cellphones having been banned in classrooms to remove distractions and get our kids focused back on learning; structured literacy introduced to change the way that children learn to read and, from next year, consistent student assessment so that parents know how their child is doing at school; a stepped-up approach to attendance because a child cannot learn if they are not even in school. And these changes are all part of our very ambitious plans and targets to deliver 80 percent of students being present at school for 90 percent of the term, and 80 percent of Year 8 students at or above the expected curriculum level for their age in reading, writing and maths by December 2030.
I, like all New Zealanders, was quite shocked by data earlier this year showing that only four out of five of our Year 8 students are not at the expected curriculum on maths and where they need to be, and of that, around three out of five of our students are more than a year behind. Our Government immediately developed a Make It Count maths action plan, led by Minister Erica Stanford, to transform maths education, including a new curriculum with resources to support teachers, $20 million for professional development and structured maths for teachers, strengthened requirements for teachers to gain NCEA level 2 in maths, and then bolstered assessment and small group interventions for students who fall behind. Today we’re announcing a few more steps to lift student achievement in mathematics, and I’ll now hand over to Erica to take you through that in a little bit more detail.