Prime Minister Luxon Engages Business Leaders at Breakfast Event

Prime Minister Christopher Luxon addressed a sold-out audience of business leaders and owners during the annual Business East Tamaki breakfast on November 28, 2023, at the Pakuranga United Rugby Club in Auckland. The event served as a platform for Luxon to discuss the current state of the economy and outline his government’s strategies for recovery.

Luxon exuded confidence and determination as he engaged with attendees, sharing insights into the nation’s economic challenges and the steps his coalition government is taking to address them. During a question-and-answer session with Zoe Wallis, an investment analyst from the event’s sponsor, Forsyth Barr Investment Advice, he described his electoral district of Botany as “the best electorate in the country,” reinforcing his connection to the local business community.

The Prime Minister began by acknowledging the economic difficulties his administration inherited from the previous government, referring to the Labour Party’s management as “those muppets.” He highlighted that the last government had increased spending by 84 percent and allowed national debt to reach alarming levels. Luxon’s coalition has been tasked with “fixing the basics of the fiscals and getting spending under control.”

Luxon emphasized the importance of fiscal responsibility, stating that just as mortgage holders benefit from timely payments to avoid extra fees, his government aims to manage debt effectively. He expressed optimism about returning the country to a budget surplus within five years.

In discussing the broader economic landscape, Luxon pointed to a “two-speed economic recovery” in New Zealand. He noted that while the rural sector is thriving, with record exports in red meat and horticulture, regions like Auckland face challenges, particularly in the construction and development sectors. These sectors are crucial for driving economic prosperity, and Luxon assured attendees that improvements are forthcoming.

One attendee, a representative from a large construction firm, remarked that his business had experienced significant growth in the past six weeks, indicating a positive shift in the sector. Luxon acknowledged the need for balanced spending cuts rather than drastic austerity measures, as seen during the tenure of Britain’s Conservatives under David Cameron.

The Prime Minister outlined his government’s strategy, which focuses on reducing spending and regulatory burdens while investing in essential areas such as health and education, with a budget of $40 billion allocated over the next two years. He revealed that the average cost of a classroom had halved since his administration took office, demonstrating a commitment to fiscal efficiency.

Luxon stressed the need to enhance economic productivity through technology, infrastructure, and public services. He cited Australia, Ireland, and Singapore as exemplary models for New Zealand to emulate in overcoming economic hurdles. His administration aims to attract foreign investment, particularly from sovereign wealth funds in countries like Korea and Japan, to facilitate public-private partnerships for infrastructure projects.

In addressing retirement savings, Luxon discussed recent changes to the KiwiSaver minimum contribution requirements, which will be phased in over the coming years. He advocated for a national conversation on raising the pension qualification age from 65 to 67, citing the increasing life expectancy as a critical factor.

Concluding the discussion, Luxon addressed concerns regarding the energy sector, stating that New Zealand should not experience an energy crisis. He criticized the previous administration’s ban on oil and gas exploration, which he believes has deterred foreign investment. However, he expressed excitement about the burgeoning renewable energy sector, highlighting ongoing wind and solar projects aimed at ensuring affordable and abundant energy.

Following the event, Luxon engaged with attendees, taking time for conversations and photos, reflecting his strong support from the business community in Botany. His assertive leadership and focus on economic revitalization resonated with those present, underscoring the importance of collaboration between government and industry in navigating New Zealand’s economic future.