PM Christopher Luxon says he will pick ‘social stability’ over high migration
Wednesday, 13 May 2026
Prime Minister Christopher Luxon has told a business audience that he will always pick “social cohesion and stability” over their “bottom lines” when it comes to migration.
He also revealed the Government would spend slightly more on one-off capital projects thanks to a $300 million reduction in envelope for ongoing operational spending.
Speaking at his first pre-Budget speech in Auckland, Luxon set out a belief that “failed immigration policies” in Europe and America had stoked a “politics of division” he wished to avoid.
“It’s worth acknowledging that at least some of the political fracturing evident in Europe in recent years is the result of politicians refusing to implement the preference of their voters on immigration.”
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Luxon told the business audience that despite New Zealand’s geographic isolation immigration had become an issue here too, and threatened to vilify the migrant Kiwis in electorates like his in Botany.
He said National was looking to tighten immigration policy and that businesses should expect him to pick “social stability” over their business needs.
“My message to the business community is that when it comes to immigration, when faced with a choice between social cohesion and stability or your bottom line, I will choose the former every single time,” Luxon said.
His comments come after coalition partner NZ First used an “agree to disagree” provision to push against his India Fair Trade Agreement (FTA), arguing it allowed for too many migrants.
Polling suggests immigration is nowhere near as politically potent an issue in New Zealand as it is in the US and UK.
Labour leader Chris Hipkins said Luxon was blaming migrants for his own problems.
“It's clear this Government want to blame migrants for the economic position the country's in. Migrants are not responsible for the terrible choices economically that this Government have been making,” Hipkins said.
Green co-leader Chlöe Swarbrick said it was “classic Christopher Luxon” to not say much but indicate that he wanted to “play into the hands of a moral panic about immigration.”
More for capital projects after operating expenditure reduction
Luxon said the Government would reduce the new operating spending envelope for the Budget to $2.1 billion, down from $2.4b in the December Budget Policy Statement.
This would give the Government some more room to spend on one-off capital projects such as infrastructure, Luxon said.
“This year I’m pleased to say that the net operating package in the Budget will be $2.1 billion, or around $300 million smaller than the $2.4 billion allowance set in December, despite the recent crisis,” Luxon said.
“That’s achievable because, while we continue to invest in essential services, like health and education, for the third year running we have been able to achieve significant savings across Government.
“So this year’s capital package will be larger than originally planned, at a net $5.7 billion.”
In December this package was set at $3.5b. Unlike operating expenditure, this spending is expected to happen just once - not every year.
“The recent crisis has acted as a timely reminder that significant levels of capital investment will be required in the coming years. To build modern and resilient infrastructure able to withstand an increasingly volatile world,” he said.
“To develop a defence force, which is fighting-fit, capable of keeping Kiwis safe and safeguarding our region from malign interference.“
He made the case for fiscal prudence as necessary for national security.
“Our status as a high-income nation is not a historical certainty. Fiscal credibility is a precondition of our prosperity,” Luxon said.
“The Government remains committed to putting debt on a downward path towards 40 per cent of GDP, and to returning the books to surplus by 2028/29.”
Luxon indicated National would have more to say on KiwiSaver policy soon.
The Budget is on May 28.