WAIKATO BUSINESS PULSE: UPDATES FROM YOUR MPS
Stay in the know with Waikato Business Pulse, a monthly communications piece featuring insights from one or more Waikato MPs. This platform, from time to time, will also give you a chance to share your thoughts through surveys and polls, ensuring your voice is heard on issues that matter to our business community.
Keep connected, stay informed, and make your impact!
March 2025
Barbara Kuriger
MP Taranaki-King Country
The privilege of Age
One of the privileges of growing older is having so much to reflect on. In that time, we’ve crafted a rich tapestry of memories and experiences we can retrieve at our leisure.
Reliving those moments can be pleasing, sad, or life-affirming; it provides us with a whole menu of emotions. The point is that the older we become, the more experiences we can draw from. At age 15, we have a fast-food meal; at age 60, we enjoy a banquet.
It’s somewhat ironic that for many of us, as we age, the past may become less significant than the future.
Often, it’s not our futures that concern us—it’s that of those who will outlive us, inheriting the world we’ve crafted for our children, grandchildren, and their descendants.
The question is, what kind of world will that be? And the question I ask myself, as a member of the government, is what do I need to do to help steer us toward a bright, prosperous, and sustainable future?
The answer lies in being part of a government that has a viable plan to move this country forward. The economy is the driving force behind that.
So, let’s examine the economy.
The future of this remarkable nation is unequivocally linked to the health of its economy; reliable, sustained economic growth is essential for enhancing living standards, developing infrastructure, and strengthening social welfare systems. While growth is underway (green shoots are appearing, as the Prime Minister so colourfully puts it), achieving a truly sustainable and inclusive economic environment is not merely an option—it’s an imperative.
Economic growth is non-negotiable for New Zealand for several compelling reasons. First and foremost, it creates jobs. A vibrant economy typically results in lower unemployment rates, granting Kiwis financial security and opportunities for career advancement. As the skilled workforce grows, New Zealand must maintain its competitive edge globally by attracting foreign investment and talent. Initiatives that promote innovation in emerging sectors, such as technology and agtech, are essential to solidifying this position.
Moreover, economic growth is vital for enhancing public services. Increased tax revenues can and should be reinvested into healthcare, education, and infrastructure—critical components for improving overall quality of life. A strong economy allows for better funding of schools, hospitals, and transportation systems, fostering a healthier, more educated, and mobile population.
However, it’s crucial to look beyond surface-level indicators. Despite growth figures, many Kiwis continue to face the harsh realities of rising living costs, particularly in housing and essential services. This stark reality underscores that growth isn’t just about statistics; it’s about ensuring that all New Zealanders benefit from this economic resurgence.
In summary, New Zealand’s current economic growth presents a promising yet challenging path ahead. The future is intricately tied to the nation’s ability to foster sustainable, inclusive, and resilient economic practices. This strategy requires a multifaceted commitment to innovation, sustainability, social equity, and adaptive responses to a fluctuating global environment.
New Zealand must embrace a holistic vision that transcends mere economic metrics as it charts its course. The objective should be to cultivate a thriving economy that elevates the well-being of all people, preserves the stunning natural environment, and firmly establishes New Zealand as a leader in responsible and sustainable growth on the global stage. While challenges exist, the potential rewards for a prosperous future are there, provided New Zealand navigates the path ahead with resolve and unity.
We owe that to our future generations—it is the privilege and responsibility of Age.
Authorised by Barbara Kuriger, 196 Alexandra Street, Te Awamutu
January 2025
Minister Louise Upston
MP for Taupō
Money is made round to go round, as the saying goes, and commerce is the vehicle for making that happen.
The Coalition Government recognises that commerce, particularly exporting, is essential to New Zealand’s wealth, and consequently, New Zealanders’ wellbeing. It means we can afford world-class public services like health and education. It means we can create jobs and raise incomes to lift all New Zealanders’ standard of living.
That’s why we have a global focus. Our goal is to double the value of exports in 10 years. We’ve made progress on significant trade agreements, including signing the European Union Free Trade Agreement, and the New Zealand–United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA).
The UAE is one of our largest markets in the Middle East. Goods and services exports totalled $1.15 billion in the year to September 2024 and New Zealand companies will have significant opportunities to grow and diversify exports into this market.
To increase capital investment in critical infrastructure, boost innovation in key sectors, and attract world-class talent, we have developed a new initiative – Invest New Zealand (INZ) – to position New Zealand as an attractive destination for foreign direct investment (FDI) and streamline the investment process.
INZ will incubate under the New Zealand Trade and Enterprise (NZTE) umbrella before transitioning to a new Autonomous Crown Entity. NZTE will be refocused with a single mandate to support New Zealand businesses to export more and grow international markets.
Unlocking tens of billions of dollars in global investment opportunities will significantly increase the capital available to support key roading and energy infrastructure and make New Zealand a more attractive and predictable destination for investors.
We’re also reforming the science sector to encourage more discoveries and breakthroughs, more commercialising of our brilliant ideas, more start-ups leading to more IPOs, and more opportunities for New Zealanders to compete internationally.
In our first year in government, we restored discipline to public spending and lowered inflation and interest rates, laying the foundations for economic growth and consequent investment, jobs and higher incomes.
A fortnight ago, Stats NZ reported that last quarter inflation was at 2.2 per cent, the second consecutive quarter that the annual rate has met the Reserve Bank’s target band of 1–3 per cent.
The domestic component of that inflation declined from 4.9 per cent in the year to September to 4.5 per cent in the year to December which suggests there is scope for further Official Cash Rate (currently 4.75 per cent) reductions in the coming months – potentially good news for mortgagors. The average interest rate paid on residential mortgages fell in November for the first time since September 2021.
Our tax package has provided the first tax relief in 14 years, benefitting 83 per cent of New Zealanders. That includes more than 40,000 families benefitting from FamilyBoost payments of up to $150 per fortnight to help with early childhood education costs.
Lower inflation and interest rates, coupled with tax relief, means families are spending less on essentials, which eases the pressure on household budgets, and allows them to repay debt and save for the future. It also frees up household cash to be spent in local businesses, encouraging investment and growth.
Prime Minister Christopher Luxon recently reshuffled his team to focus on this year’s priorities of economic growth and creating more opportunities for businesses.
To reflect this, the Economic Development portfolio has been renamed Economic Growth, and it has been assigned to Minister of Finance Hon Nicola Willis in addition to her existing portfolios. She will be looking at initiatives to encourage business growth, develop talent and attract investment.
Bringing tourist dollars into New Zealand is part of our economic growth strategy. As the freshly minted Minister for Tourism and Hospitality, I have a special focus on the sector – a critical area for growth and employment, particularly in the regions.
International visitors stopped coming during the COVID-19 pandemic, and while numbers are steadily rising, they haven’t yet returned to pre-pandemic levels.
Nevertheless, for the year ended March 2023, Tourism was New Zealand’s second-largest export earner, contributing $10.8 billion, or 11.4 per cent of New Zealand’s total exports of goods and services.
I will be encouraging organisers to bring international events to our shores, like the recent VinFast IRONMAN 70.3 World Championship which brought 6000 of the best professional and age group triathletes (and their supporters) from 119 countries around the world to Taupō. Having made the trek to New Zealand, many of them visited other parts of the country as well.
These are the types of events we can piggyback on, encouraging visitors to stay longer and spend more, and of course spread the word about their fantastic experiences to friends and family back home.
The recent New Zealand Institute of Economic Research Quarterly Survey of Business Opinion shows an uptick in business confidence in the last quarter (October – December 2024), the highest level since 2021, and an expectation of increased economic activity.
Happy New Year! I’m optimistic it’s going to be a good one!
Authorised by Louise Upston MP, 67 Paora Hapi St, Taupō
