Luxon Engages Auckland Business Leaders on Economic Recovery

Prime Minister Christopher Luxon addressed a gathering of business leaders in Auckland on November 28, 2023, emphasizing the government’s plans for economic recovery and fiscal responsibility. The sold-out breakfast event, hosted by Business East Tamaki at the Pakuranga United Rugby Club, provided a platform for Luxon to discuss the current economic landscape and the government’s strategies moving forward.

During the event, Luxon expressed optimism about the future of New Zealand’s economy, referring to his Botany electorate as “the best electorate in the country.” His remarks came amid ongoing discussions about the economic challenges inherited from the previous Labour government. He criticized the last administration for increasing government spending by 84 percent, leading to significant national debt and an expanded public service.

Luxon outlined his coalition’s priorities, which include controlling spending and returning the country to fiscal surpluses within five years. He compared financial management to mortgage payments, asserting the importance of settling debts promptly to avoid additional costs.

The Prime Minister highlighted disparities in economic recovery across sectors, noting robust performance in rural exports, particularly in red meat and horticulture, contrasted with challenges in Auckland’s construction and development sectors. “It has been difficult,” Luxon stated, referring to the reliance on construction for regional economic vitality.

Audience members included representatives from various industries, including a construction executive who remarked that his business had seen significant growth in recent weeks. Luxon acknowledged the need for prudent fiscal measures while rejecting extreme austerity, echoing lessons from the UK’s fiscal policies under former Prime Minister David Cameron.

Luxon emphasized the government’s commitment to reducing red tape and investing in essential services, including education and healthcare, with a budget allocation of $40 billion over the next two years. He noted that costs associated with classroom construction had halved since the coalition took office, a point that elicited surprise from attendees.

The Prime Minister also discussed strategies for enhancing economic productivity, referencing successful models from countries like Australia, Ireland, and Singapore. He underscored the importance of attracting foreign investment, particularly from sovereign wealth funds in Korea and Japan, to support public-private partnerships in infrastructure development.

In a significant policy discussion, Luxon touched on the future of national superannuation, advocating for a conversation about increasing the pension qualification age from 65 to 67. He justified this by noting increasing life expectancy and the necessity for citizens to augment their retirement income through personal savings.

Concluding the event, Luxon addressed the energy sector, asserting that New Zealand should not face an energy crisis. He criticized the previous government’s ban on oil and gas exploration, which he claimed deterred foreign investment. He highlighted the growth of renewable energy projects, particularly in wind and solar, aiming for “affordable, abundant energy for everyone.”

After the discussion, Luxon engaged with attendees, taking time for conversations and photographs, reflecting his approachable leadership style. The event underscored his commitment to fostering relationships with business leaders and addressing the economic challenges facing New Zealand.