Christopher Luxon
Prime Minister
Minister, Ministerial Services
Minister, National Security and Intelligence
Permanent linkRight. Well, good afternoon, everyone, and welcome to a new sitting block—week, and it’s certainly going to be a very busy one for all of us. Today I’m joined by our Transport Minister, Chris Bishop, for an update on the Auckland second harbour crossing.
But look, firstly, I just want to touch on the big economic news from last week. That, of course, was that international ratings agency, S&P, upgraded its growth forecast for New Zealand. S&P now expects New Zealand’s economy to grow faster in 2026 and also in 2027 than it previously thought, due to rising domestic confidence, citing in particular the growth in business investment which S&P says is carrying growth momentum into the second half of this year. This is a really encouraging sign and it shows confidence is returning, businesses are looking ahead and the Government’s focus on rebuilding the economy is helping to create the conditions for stronger growth.
In its report, S&P highlighted global energy market uncertainty as a risk to disposable incomes, and this just reinforces our Government’s view that amid ongoing volatility in the global energy market, our response must be to maintain fiscal discipline. By keeping Government spending under control and then providing timely, targeted and temporary support with fuel prices, we can minimise the impact on inflation and interest rates. And by being financially responsible, we can also protect disposable incomes by keeping taxes low so that New Zealanders get to keep more of what they earn.
The good news on energy is that our Government’s efforts to support greater development of renewable energy and enable a backup supply of fuel are each contributing to lower wholesale electricity prices, which have fallen by around 35 percent since the 2024 peak, and that’s the equivalent to a drop of $70 a megawatt hour. This shows our "and, and, and" energy approach is working to reduce dry year risk, and also to bring down forward electricity prices, and that means a potential saving of up to $800 million a year. Our Energy Minister, Simeon Brown, has made it very clear to the gentailers that the Government expects that these savings are passed on to Kiwi households and businesses.
In other good economic news from last week, Stats New Zealand data showed visitor arrivals from Australia in the June ‘26 year hit a record high for any annual period in history. South Island airports also exceeded 1 million overseas visitor arrivals annually for the very first time in the March ‘26 year, and that has continued through to June as well. Having spent a lot of time in the South Island recently, including just last week, it’s easy to see why visitors are flocking there in such large numbers. More visitors, of course, means more spending in local cafes, restaurants, shops and tourism businesses, and that of course means more jobs, more opportunities and higher incomes for Kiwis.
Turning to today’s announcement, the Government is confirming the next steps for the second crossing over the Waitematā Harbour. Aucklanders know how much a second crossing is desperately needed. The Auckland Harbour Bridge carries around 170,000 vehicles every day, and it is absolutely critical to our economy. It underpins almost $1 billion in annual economic activity, and with this activity projected to increase to $3.9 billion by 2051.
But the Harbour Bridge has limitations, and as our most populous city grows even more populous, those limitations will only become more acute. Auckland is New Zealand’s economic engine room so we need it to be connected, we need it to be productive, and we need it to be set up for growth and prosperity. The case for a new crossing is strong, and we’re committed to delivering it. And I’ll now pass on to Chris to take you through today’s announcement in a little bit more detail.