Dr Shane Reti demoted, Simeon Brown new health minister

Sunday, 19 January 2025

Health Minister Dr Shane Reti will be replaced by Simeon Brown as Prime Minister Christopher Luxon shakes up his Cabinet to start the new year.

On Sunday afternoon, Luxon announced a surprise reshuffle of his Cabinet at a press conference held at Premier House, in Wellington, effectively kicking off the political year.

Homing in on economic growth and healthcare ‒ problem areas for the Government ‒ Luxon gave Finance Minister Nicola Willis the “economic growth” portfolio, a re-brand of the economic development portfolio typically held by lower ranked ministers, and took health from Reti.

“It's really about making sure we put growth, growth, growth as our number one job for this Government as we go forward,” Luxon said.

Reti ‒ who spent the summer break vaccinating children in the Pacific ‒ was disappointed about the decision, but he was a “class act” and a team player, Luxon said. He insisted he remained confident in Reti as a minister, but needed the “delivery and execution” in the job that Brown could bring.

Economic Development Minister Melissa Lee, already demoted in 2024 for failing to perform as broadcasting minister, will no longer be a minister in changes due to take effect on Friday. Lee had made a “fantastic contribution to the National Party over many years” and had indicated she would carry on as an MP, Luxon said.

Luxon said Willis would be “driving the Government's growth plan this year”.

“That will mean co-coordinating and strengthening efforts that are already underway to deliver economic growth – and taking responsibility for new initiatives designed to promote growth and productivity in the New Zealand economy.”

Willis said as economic growth minister she would have responsibility for the Ministry of Business, Innovation and Employment and the “licence” to pursue big ideas which “can make this economy deliver”. She said there would be more to say later this week.

“I intend to set very clear expectations for when changes will be delivered, how we will prioritise, and make sure the resources of Government are going where they can make the biggest difference.“

While Reti had “worked hard to reset the culture and performance of Health NZ”, Luxon said he had “heard Kiwis’ concern” about healthcare.

“At the end of the day, for Kiwis, what they need our healthcare system to do, is to be able to get that visit with a GP for their young kid. They need to make sure their parents need a knee replacement. Need to get access to those cancer drugs.

“That's what matters to them. And Simeon's track record in transport on delivering on those priorities is going to be really what we need want.”

Labour Party health spokesperson Dr Ayesha Verrall said it was not the Government’s political management of health that was the problem, but the budget.

“We know that 3000 roles are being cut from the health system. GPs are putting their charges up. Prescription charges are going up. That that is the fundamental problem with the health system.

“The first thing I would expect a minister to deliver is a plan. [Health NZ commissioner] Lester Levy was told to deliver a plan in July of last year, and there has been no plan. Today's changes in health and elsewhere are largely cosmetic, unless they are delivering a plan.”

She said Luxon and Willis had provided a lot of “buzz words about productivity” but Willis’ appointment was “an admission that the Government has failed on the economy”.

“For goodness sake, for the last 14 months, was no one checking in on Melissa Lee and asking if she had a plan for something that is so important to the National Party's party's brand?”

Elsewhere in the reshuffle, Chris Bishop, currently minister for infrastructure and RMA reform, would take Brown’s transport portfolio, and Climate Change Minister Simon Watts would take Brown’s energy and local government portfolios.

Reti would remain in Cabinet and become minister for science, innovation, and technology, minister of statistics, and take the new title of minister for universities.

Willis would be freed up in her economic role by having Minister Judith Collins take the public service portfolio. Police Minister Mark Mitchell would also take sport and recreation from Bishop, and ethnic communities from Lee.

Bishop will be assisted in his job as Leader of the House by Louise Upston, who becomes deputy house leader.

Trade Minister Todd McClay would now become “trade and investment” minister, as Luxon said the Government was “very keen to access foreign pools of capital” to build infrastructure and capitalise local companies.

Upston would also be tourism and hospitality minister, portfolios previously held by Matt Doocey, who remains minister for mental health.

Doocey’s other portfolio, ACC, would be taken by Andrew Bayly. Luxon said Doocey would remain in Cabinet with only his mental health portfolio to ensure “ruthless focus on execution”.

Bayly, who apologised in 2024 for offending a worker during a business visit, loses his small business and manufacturing portfolio to Building and Construction Minister Chris Penk. Both remain outside of Cabinet.

In Lee’s place would be a new minister, first-term MP James Meager, who would become minister for hunting and fishing, minister for youth, and associate transport minister.

Meager becomes the newly created “minister for the South Island”, to ensure the mainland’s voice is heard by the Government.

Transport and infrastructure needs in the South Island would be a focus of Meager’s, Luxon said.