In his address to the local business community on Friday, Prime Minister Rt. Hon Christopher Luxon outlined his key priorities to get the economy back on track.

At the sold-out Business Canterbury event, he acknowledged that economic conditions have been challenging but said the country as a whole needs to focus on raising productivity. “The real opportunity is how to drive growth and higher paying jobs. Our core problem is economic productivity – our work is not creating the value that it needs to.”

The first of the priorities he outlined to address this was focused on education, noting that four out of five children entering high school are not at the required standard in mathematics. “Getting our kids educated is the key thing in moving our country forward. The first thing is to build a world class education system – we have to get our kids to school. We want to see 80% of our kids to school 90% of the time. We also have to work harder on reading and maths to strengthen foundational skills. Achievement and attendance are very much a focus.”

The Prime Minister also addressed concerns about the ‘brain drain’, acknowledging the challenge of retaining young talent in New Zealand. “We are rebuilding the economy, improving public safety, and enhancing education and healthcare systems that are crucial to creating an environment where young people would choose to stay and contribute to the country’s future, or return to.”

He also stressed the need for investment in reliable, modern infrastructure for sustainable growth, with a focus on transport and water, and outlined plans for reform in funding and financing, including the potential use of new funding tools such as tolls and time-of-use charging to accelerate infrastructure projects. In addition, he showed support for bipartisan agreements to ensure key projects were able to progress and maintain forward momentum, regardless of who was in government. “We need to not think tactically but strategically, so – irrespective of political party – key infrastructure projects are able to be delivered.” He also highlighted the need for regulatory and consenting reform to streamline processes and attract investment.

Another key priority outlined by the Prime Minister was around the country’s world-class research and innovation, emphasising a need to “embrace science and innovation and commercialise the innovation”.

“There are some amazing entrepreneurial companies out there if we can adopt more technology and leverage investment in capital to realise their potential.” He also mentioned the “huge value” in AI, and its significant potential to positively impact productivity.

There was also a strong focus on the need to address regulation to foster a balanced and dynamic business environment. “We have become an obstruction economy not a can-do economy. We need to strip red tape to get things built and done. We also need to prioritise economic growth and development in the regions.”

He also called for the need to strengthen international connections to the world for greater cooperation and to engage more effectively with global markets, particularly in the Indo-Pacific region. “International markets hold huge potential for New Zealand. There is money out there that wants to come to New Zealand. We need to attract capital investment.”

Throughout his address, the Prime Minister was optimistic about New Zealand’s potential: “there’s no reason why together we can’t build the most advanced small country on earth”, with his closing comments grounded in resilience: “It may be tough, and I get it, but don’t ever give up on New Zealand and don’t give up on New Zealanders.”

Many of the Prime Minister’s comments were echoed by Business Canterbury Chief Executive Leeann Watson, who shared her insights from a Canterbury perspective. “We’ve seen some early signs of optimism off the back of falling interest rates. However, while there is light now at the end of the tunnel in what has felt like an elastic band economy over the last four to five years, intentions around investment in plant, property, and equipment, as well as hiring staff, remain subdued. 

“The overall sense we are getting when talking to members is that going into next year, we can hopefully move from ‘survive to 25’ to ‘thrive in 25’. But right now, cash is still very tight and many businesses are still having to make some pretty tough decisions about the size and capacity of their workforce, before we get there.”

Ms Watson outlined a number of wins for business in the last year, including the removal of fair pay agreements, the reintroduction of 90-day trials for all employers, the establishment of the Ministry for Regulation, and reform underway with the Holidays Act, health and safety, vocational education, infrastructure, and immigration policies. 

She also discussed her ambition for the Canterbury region. “As we hone in on our competitive advantages with geography, talent of both our innovative, dynamic aspirational businesses and the people that choose to live and work here, natural resources and a well-diversified economy, not to mention the strong quality of life, it is time to build off our post-rebuild momentum and make it clear where we are going as a region.

“We hope the Government will join us on our journey as part of Canterbury’s role in NZ Inc given the significant contribution we make to the local and national economy both now, and into the future. When the opportunity arises to secure a regional deal, we also want to be ready to move forward with strong engagement and a very clear mandate from the private sector, enabled by local and central government.

“We are looking ahead at a golden decade for Christchurch and Canterbury – and right now people are voting with their feet, moving here not just for work and study, but to be part of our region’s story and to build a future here. So, the time is right to lead this work which should clearly signal to the Government that we are here, and ready to amplify our role in New Zealand.”

A special thanks to Business Canterbury’s Strategic Partners Westpac, Orion, The University of Canterbury and 2degrees; and major event partners Christchurch Casino, Christchurch Airport and venue host Air Force Museum of New Zealand.