Christopher Luxon
Minister, Ministerial Services
Minister, National Security and Intelligence
Prime Minister
Permanent linkWell, kia ora. Good afternoon, everyone. Good to see you all as we get into the home stretch of the year. We’ve got a very big legislative agenda ahead of us in the coming weeks, as we close out 2024.
Today, the second quarterly report on our Government’s nine public service targets has been released for results to September 30 this year. And, as you know, our Government established targets to focus our public sector and Government on delivering better results for New Zealanders in health, education, law and order, work, housing and the environment by 2030.
Setting clear targets helps to focus resources, attention and accountability to improve the delivery and the quality of public services, and these deliberately ambitious targets sit alongside our quarterly action plans, our regular strategy committee sessions and the agenda of rebuilding the economy, restoring law and order and delivering better public services. They’re critical mechanisms to ensure the Government, and also the public service, remain very focused on delivery for the New Zealand people. Now, these targets aren’t just numbers; they are about taking meaningful action to drive progress, measure outcomes and create better futures for all. Regular reporting allows us to be responsive, to really get under the hood of what is going on in the public services that matter the most to New Zealanders, and to use the data to make interventions and also decisions that will make the biggest impact.
It’s encouraging to see fewer victims of violent crime and a reduction in youth offending. We still have a long way to go, but our Government’s extensive law and order agenda is laser focused on going after criminals and keeping Kiwis safe. Work to get families out of emergency housing is making significant headway, with data showing a more than 60 percent reduction from when we came into office. This is a huge step forward, improving the lives of some of our most vulnerable families. There’s also been small improvements in emergency department and elective surgery wait times and in student attendance.
However, we know that there is much, much more to be done, and we also expect results to move around between reporting periods and we know that we won’t always improve every quarter. For example, the number of people receiving the jobseeker support benefit saw an increase of more than 8,000 this past quarter. No doubt life is still tough for many New Zealanders. Years of high inflation, high interest rates and a recession have taken their toll. But I’m confident that we’re now turning the corner. Between tax relief, Family Boost, expanded Working for Families credits, inflation relief and mortgage relief, life is getting materially easier for Kiwis.
For example, inflation is now down to 2.2 percent, the lowest in three and a half years. Food inflation is down to 1.2 percent from 12.3. We’ve seen wages grow faster than inflation for the four quarters in a row under this Government, versus 13 quarters in a row where it went backwards, and we have rents that are stable versus the $180 per week, under Labour, increase. We see the OCR now down to 4.25 percent and meaningfully that means for a Kiwi with a 25-year, $500,000 mortgage, they could save around $180 per fortnight. We’ve seen three rate cuts under our Government, versus 12 rate rises under the previous one.
And economic sentiment is improving. We see consumer confidence at a three-year high, we see business confidence at a 10-year high. Now, we expect job seeker unemployment to track the economic cycle, and as the economy improves, those on jobseeker will come down. Having said that, under Labour, despite lower unemployment and record job shortages, we actually saw 60,000 more people go on jobseeker unemployment benefit, putting 40,000 more kids into benefit-dependent homes.
Our Government will always champion a welfare safety net to help Kiwis in genuine need. However, our strong expectation, as we have foreshadowed, is that those who are able to work should work, and the more people who are working and the fewer who are on welfare, the better for them, their future, the better for their families, and the economy, and for New Zealand. Quite simply, employment is always going to offer people and their families more independence, more choice, more opportunity, and more money than welfare ever will. A life on welfare is not the way to maximise a young person’s creativity and untapped potential, we want more for our young people. So we’ll continue to do everything we can to get the economy growing so that we can create more employment and growth, but also to support people off welfare and into work and ultimately a better life for themselves and their families.
With that, I’ll hand over to Louise Upston, who will provide a little bit more additional support on what else we’re doing to get people on jobseeker into work.