Christopher Luxon
Minister, Ministerial Services
Minister, National Security and Intelligence
Prime Minister
Permanent linkGood afternoon, everybody. It’s good to see you all. Welcome back, and I hope you had a bit of a chance to have a break over the recess. Can I just say a very big thank you to all of those that joined us on our trip to Malaysia and Korea for the East Asia Summit and to APEC. I think it was a pretty successful week for New Zealand, being able to push out deeper trade, defence and leader-to-leader relationships, and also the message that New Zealand is very much open for business.
This Government’s focus, as we’ve talked many times before, is about balancing the books, getting rid of the barriers to business in the form of red tape, and building the modern hospitals, roads, and schools that we need. Overseas investment is really vital in our plan to grow the economy, and by growing the economy we create jobs and we lift wages. That is why a good proportion of my overseas travel focuses on growing investment as well as cementing political relationships.
In Malaysia, two deals were cemented that underscore the huge potential to be tapped offshore. Malaysian-headquartered energy company Yinson Renewables announced a pipeline of renewable energy projects, expected to total around one gigawatt of renewable energy projects. This is a $2 billion to $3 billion investment that will create enough energy to power 750,000 homes, and that’s more, of course, than the total output of Huntly. Yinson has been developing a pipeline of wind projects in New Zealand over the past four years, supported by Invest New Zealand, the agency that we created to accelerate this type of investment at this year’s infrastructure summit.
The other significant deal signed in Malaysia was in tourism infrastructure, and the infrastructure conglomerate YTL confirmed a $160 million investment in the 225-room Hotel Indigo in Auckland, which is in fact the second-largest hotel transaction on record in New Zealand this year, and in fact the very first investment from YTL in New Zealand. These investments all demonstrate that New Zealand is seen as a credible investment destination by high-quality global investors. The projects that they commit to create jobs for your kids and a higher-wage economy as a result.
Tourism also offers us a huge opportunity to lift this country’s fortunes and it’s already exceeding our expectations. Tourism spending is up 34 percent since the election and we are nearly back to pre-COVID numbers. Our hotels, restaurants, retailers, and tourism businesses need these numbers to grow and we need tourism dollars coming in the door, and that’s why we’ve been doing everything we can to encourage visitors.
In the past month we’ve announced a $70 million events attraction package to secure large-scale international events and also to support new and existing smaller events as well. Major events, whether they are sports games or concerts, are a big win for the cities and regions that host them, supporting local jobs and incomes in pubs, restaurants and shops. And just yesterday, Minister Upston and Minister Potaka announced a new cycle trail in Ruapehu which will generate significant economic activity into the region and New Zealand.
And then here at home, fast-track, our process for powering up the economy, has been working well, and just a few hours ago, replacement consents for Genesis Energy’s Tekapo power station were approved. This power scheme is critical to New Zealand. It powers up 228,000 households and today’s fast-track decision means that this will continue long into the future.
This fast-track approval follows the port of Auckland expansion, Maitahi Village development in Nelson, and the Milldale development in Auckland. And the Auckland port expansion is expected to deliver between $2.5 billion to $6.6 billion to the New Zealand economy, as well as supporting 140,000 jobs over the next 30 years. Milldale will deliver 1,100 new homes in Auckland, contributing nearly half a billion dollars to the economy and supporting 3,500 jobs, and Maitahi Village will deliver hundreds of new homes in Nelson, contributing $356 million to the local economy and supporting 2,700 jobs.
Now, all of these projects would have taken years and years to consent under the RMA, and instead they have been approved in around six months. There’s been a serious amount of work done by this Government to shift what have been very stubborn economic circumstances and we’re going to continue to do all that we can to improve the lives of New Zealand families. And with that, I’m very happy to take your questions.