Economic growth top goal again in Government’s latest quarterly plan

Monday, 7 April 2025

Christopher Luxon, Chris Bishop, and Simon Court outline plans to drive investment, push economic growth, and scrap the Resource Management Act at a post-cabinet press conference.

The Government is promising its policies for the next three months ‒ laid out in its latest quarterly action plan ‒ will “rebuild” the economy, despite the intensifying global trade war.

“We know the cost of living is still tough but with global domestic product rising, interest rates falling, and inflation back in its box, our plan is working, and we must push ahead on going for economic growth,” Prime Minister Christopher Luxon said in a statement.

Why it matters

It comes after US President Donald Trump slapped a 10% tariff on New Zealand exports, as part of a sweeping tariff regime, with a $900 million charge now being levelled at New Zealander’s exporting to the US.

New Zealand’s beef market is expected to be hit the hardest by the tax, because the US is its largest market. Luxon said the US consumer was likely to face higher costs as a result, but also conceded the New Zealand economy would suffer overall from an escalating trade war, as countries around the world threaten to retaliate to Trump’s provocation.

Prime Minister Christopher Luxon says the country must push ahead with economic growth.

This is because New Zealand’s economy relies heavily on exports, especially dairy, meat and wool exports. A trade war would reduce demand for these goods and hurt producers.

The breakdown

It is the second action plan released this year, which serves as an indication of the Government’s focus for the next three months. Some of the policies have already been signalled or are part of the coalition agreements between the three parties in government.

Finance Minister Nicola Willis is in charge of the first item on the action plan, which is “deliver a Budget”. (File photo).

Action number one is “deliver a budget” that will boost economic growth, control government spending and invest in infrastructure. The Budget, which sets out it spending intentions for the next year, will be released on May 22.

It also includes plans to introduce legislation to encourage international investment such as through new entity Invest NZ, created earlier this year, as well as amend the Overseas Investment Act to make it easier for foreign investors to invest in New Zealand.

“We will also take action to boost tourism and international education and push ahead on our 30-year National Infrastructure Plan to attract investment and give our construction sector long-term certainty,” Luxon said.

Other plans include proposals to legislate so employers can deduct wages in response to partial strikes, and for victims of sexual violence to determine whether their attackers get name suppression. It also includes a promise to deliver 10,500 more elective surgeries through the private hospital system. About 2000 surgeries have already been performed in private hospitals through the initiative this year.

There are two partially completed, and one uncompleted, policy on the quarter 1 action plan: a Cabinet paper on the Regulatory Standards Bill has been completed and will be considered at an upcoming Cabinet meeting, while the Health Infrastructure Investment Plan has been considered by Cabinet and will be published shortly.

The uncompleted action to “take Cabinet decisions on legislation to improve the regulation of medical devices” has been referred to a future Cabinet meeting to allow for further consultation with the industry.