Christopher Luxon
Prime Minister
Minister, Ministerial Services
Minister, National Security and Intelligence
We leave India having broadened and deepened our relationship on all fronts, whether that be in peace and security, trade and commerce, and people-to-people [Inaudible]. As you know, India is the most populous country on Earth, soon to be the world’s third largest economy, and is a major regional and global player in an increasingly multipolar world. Our team is now looking to build very quickly on the momentum of the visit, which will be made clear with our comprehensive FTA negotiations. When one out of four Kiwi jobs are tied to trade, we’ll continue to do everything that we can to drive all of our partnerships to new levels, and the work that we’ve done with the UAE and the GCC FTAs, as well as hopefully the Indian FTA, I think are good examples of that work.
The recent Investment Summit in Auckland ten days ago was another example of our Government’s relentless focus on growth, an the level of interest by major infrastructure and investment companies and entities from across the world, with $6 trillion of investment funds, was substantial. This was the message that investors had been waiting for, that a New Zealand Government now is open for business and investment with great clarity around the investable opportunities, a New Zealand Government hell-bent on making doing business in this country easier and more seamless, and a pitch for New Zealand as a good investment proposition and a safe haven in a more volatile and competitive investment world. I thought the CDPQ from Québec summed it up pretty well when they said, “We’re looking for predictability and stability”. I’ve been covering this region for more than ten years and we now feel—we are now very happy to feel our capital is so welcome in this country”, and that sentiment was expressed again and again by investors at the summit.
But ultimately the reason we want to attract more investment and economic growth to New Zealand is because it is the key to raising living standards, creating higher-paying jobs and delivering the public services that Kiwis want and deserve. And that is why we’re so determined to unlock even more investment, more innovation and more entrepreneurship. The bottom line is that we need to take every possible step to lift New Zealand’s economic performance, and we know many families and businesses are still suffering the after-effects of high inflation and interest rates but we also know that we are starting to turn the corner economically and that better days lie ahead for all of us.
We are officially out of recession and proof of that was the 0.7 percent increase in Q4 2024 GDP announced last week. We are winning the battle on inflation, creating a sound, stable platform for business and future growth—two years ago, inflation was 7.1 percent and right now it’s at 2.2 percent—and most importantly, wages have been growing faster than inflation for the last five quarters, putting more money into Kiwis’ back pockets. Interest rates continue to fall, retail rates have fallen steadily as the OCR has dropped from its peak of 5.5 percent to 3.75, and economists expect further rounds of cuts in both May and April, April and May. Business confidence is around its highest level in a decade, farmer confidence is breaking records, and the forward outlook for dairy, red meat and wool is really encouraging. Annual tourism expenditure was up 23 percent last year and services and manufacturing activity have also returned to growth after extended periods of contraction.
Even though we are turning the corner and we’re on the right track, it’s still tough for some Kiwis and it’s important that we keep the foot firmly on the growth pedal, and there’s no way that we will maximise the massive opportunities from international trade and investment if we don’t unleash growth here at home. Travel around the country and you’ll see examples every week of growth and opportunity being blocked by busybodies weaponising the Resource Management Act. The RMA has enabled a cottage industry of lawyers and consultants drafting thousands of pages of papers and reports all designed to block new roads, new wind farms, new apartments in our central cities, and farming in rural New Zealand. It’s the culture of no that I spoke about earlier in the year, brought to life.
Kiwis are sick of it, I’m sick of it, we’re all sick of it and now we’re taking action to completely dismantle and scrap the RMA and replace it with fresh legislation that just lets Kiwis get on with it. Today I’m pleased to announce that Cabinet has agreed to the high-level design of that replacement, and with that I want to hand you over to RMA Reform Minister Chris Bishop and also Simon Court to take you through more of the details. Chris.