Category: MIL-OSI

Source: NZ Music Month takes to the streets

It’s great to be here today on what has been a momentous week for resource management reform.

As you’ve heard, Minister Bishop and I have been working hard to reset resource management in New Zealand.

Today I want to talk to you about the broader step change and what that is going to mean.

Among the many problems the RMA has caused is a playing field of skewed incentives for decision makers that has led to a culture of risk aversion and restriction.

As policy makers, we must expect people to follow the incentives they face. That is rational.

This is why it is important our reforms get the incentives right, to minimise distortion and incentivise optimal outcomes.

There are several elements of the reform that are particularly important in achieving this; in transforming this culture of planners first saying “no, but…” to one of “yes, and…” We must do away this culture of regulatory anxiety.

Regulatory anxiety

Good decisions rest on benefits outweighing costs, and on decision-makers facing the right incentives to adequately assess these costs and benefits in full.

Yet, planners working under the RMA are trapped in an asymmetric system.

The risks of saying yes—public backlash, political fallout, legal challenge and cost—are much more direct and salient to those making the decisions. 

The costs of excessive caution—housing shortages, infrastructure deficits, wasted economic opportunity, and infringements on people’s property rights—not so much.

Many of these costs are spread across society and felt over decades, some just shovelled onto private property owners to cop. This system rewards planners for avoiding risk, not for enabling growth, and it enables the undermining of property rights in the process.

The result? A culture of “no” and a bias toward excessive caution; caution that ties us down and squanders the great opportunity we have to cement our spot as the best country on the planet.

We’re making several moves to drive change.

Fixing the problem

Descoping

I have been beating the drum about the RMA’s absurdly broad scope for a while now, and we’ve talked about descoping as principle number one of the reform, so I will spare you the further noise beyond saying this: descoping the ‘effects’ the system manages will play a core role in liberating planners from the regulatory anxiety with respect to so many things currently managed. 

There will simply be less to do, and less to worry about.

The right to plan

The reforms will reinforce that districts and cities have the right to plan. Your city, your district, will have democratic accountability for choosing where to grow from standardised zones set at a national level, providing a high level of regulatory assurance to planners.

By closing the door to anyone who doesn’t like their specific height to boundary ratio to agitate for some bespoke zoning rules, this will necessarily ease pressure facing planners who currently must defend these things.

Communities will still get to have their say at the planning phase—and, in fact, they will be incentivised to do so—but we do intend for the ability for appeals to be greatly reduced which will go a long way toward reducing regulatory anxiety. This is an area we will firm up over the coming months.

National standards for common activities

Similarly, national standards for common activities will reduce anxiety that planners and decision makers currently have when it comes to forming up defensible consent conditions for what are relatively common and necessary activities.

Under the current system, decision makers must assess a wide range of potential effects, which often drives disproportionality between the consent conditions and the effect they are trying to manage, for the sake of appeasing noisy NIMBYs who don’t like things like quarrying, and who may be motivated to appeal otherwise reasonable decisions.

This often leads to a “ratcheting up” effect on consent conditions in an attempt by both applicants and decision makers to ward off pesky appeals. 

Codifying practice for common activities, like earthworks and working in a water course, into regular standards will liberate the anxiety planners face to set ever more stringent conditions and give development a mandate to certainly and sensibly occur, from Cape Reinga to Bluff.

Environment

The current system presumes that developers and infrastructure must avoid sensitive environments and that only by a torturous and often litigious process can an outcome which benefits the environment overall be arrived at.

Instead of spending weeks and months and years and tens of millions of dollars arguing with any Tom, Dick or Harry in various hearings, wouldn’t it be better that experts direct their energy into win-wins? Biodiversity offsetting springs to mind as a particular area of opportunity to help deliver both better development and environmental results.

Offsetting and compensation should be a starting point for conversations beginning with “yes, and”, because for someone like me who thinks an ideal date is an eco-adventure to see creatures like lizards, bats, and Freddie the frog, that could equally be a constructed wetland at an active or rehabilitated mine site, as much as it could be to Zealandia. 

Planning Tribunal

While these anxiety-reducing steps we’re taking will go some way to restoring balance and proportionality in decisions, there is a need for additional tension in the system to offset the distortion towards regulatory overreach and too much “no” in planning and decision-making.

This is a key focus of the Planning Tribunal.

By providing an accountability mechanism against scope creep and unjustified regulation, the Planning Tribunal will provide the tension in the system necessary to ensure the system is delivering as intended.

No longer will it be the easy way out to default into decision making that appeases salient interests and pressures at the expense of growth and progress.

Compensation for takings

Further tension will be introduced through compensation for regulatory takings to ensure decision makers are confronted with the costs of decisions to infringe on property rights.

Morally, it is simply not fair to force people to privately cop the cost of decisions supposedly made in the public interest—if the public has an interest, the public should pay.

Compensation for regulatory takings is akin to a congestion charge on regulation. 

Without a price on congestion, there is too much traffic. Without a price on protecting trees, or ‘outstanding’ or ‘highly productive’ land, there is a risk of too much regulation on people who want nothing to do with it.

We pay people for their losses from compulsory acquisition under the Public Works Act, and there’s no reason the same principle should not apply for partial takings for the public good under resource management legislation.

Moral case aside, this will lead to more careful consideration with respect to decisions that would restrict property rights, and ensure they occur only where there is a genuine net public good.

Conclusion

We are clear on the problems we intend to solve through the new planning system for people and the environment.

We are clear this requires a culture change.

We are clear that this culture change rests on a reset of the incentives for decision makers.

This requires a fundamental shift in the values and behaviours of the planning workforce which must align with our nation’s ambitions for the new system. 

A culture change means planners and decision makers share the ambition of property owners to maximise enjoyment of their property, of developers to deliver affordable homes, and of the infrastructure guardians to provide efficient and safe infrastructure.

To enhance overall performance, a culture change from “no, but” to ”yes, and” is a must-have, not a nice to have.

The new system will be designed to enable this culture change, and to enforce it where old habits persist.

I look forward to working with planning professionals on this necessary evolution.

Source: NZ Music Month takes to the streets

Opening

Good afternoon. I’m excited to be here at the KangaNews Debt Capital Markets Forum.

It’s a pleasure to be here with all of you – investors, financial institutions, and wholesale market participants who play a vital role in unlocking New Zealand’s economic future.

I’d like to thank ANZ for hosting this event and for inviting me to speak.

Debt capital markets are fundamental to the success of the Government’s plan to go for growth.

Capital is like water to a seed – it enables New Zealanders, businesses, government, and NGOs to action and grow their bright-ideas, ambitions, and aspirations.

The deeper our capital markets get, the more opportunities our country will have to thrive.

Today, I want to discuss how the Government is unlocking growth and overcoming funding and financing challenges in housing and infrastructure in a fiscally constrained environment.

I will also be announcing actions Cabinet has recently agreed to that will reduce debt financing barriers for Community Housing Providers.

Unlocking growth

New Zealanders have said that inflation and the economy are in the top three issues facing the country.

The only sustainable way to fix the cost-of-living crisis is to ensure wages grow faster than inflation.

That means growing the economy through more high-paying jobs, increased productivity, greater innovation, and more investment.

The best thing the Government can do to support this is:

• one ensuring systems, regulations, and laws are growth-enabling – like the Resource Management Act, and
• two getting interest rates lower.

Now, the Government doesn’t set the Official Cash Rate (OCR) – that’s the Reserve Bank’s job – but we can help support lower interest rates through responsible fiscal management, getting the government’s books back in order, and investing in productivity-enhancing infrastructure.

That’s what we have been doing, and since we came into Government the OCR has dropped 175 basis points.

In Budget 2024, we found $5.9 billion on average in annual operating savings and revenue, and $3.1 billion in capital savings and revenue over the forecast period. We reprioritised savings to fund tax relief and cost pressures in Health, and to support other growth-enabling initiatives.

For us, it’s about ensuring every public dollar goes to its best use. Greater value for money means we can provide more and higher quality services that people need.

Budget 2025 will be no different.

Without swerving too far into the Minister of Finance’s lane – I can say that Budget 2025 will focus on four areas:

1. Lifting economic growth through measures to tackle New Zealand’s long-term productivity challenges,
2. Using a social investment approach to improve life outcomes for people with high needs,
3. Keeping tight control of government spending, while funding high-priority commitments and cost pressures, and
4. Developing a pipeline of long-term infrastructure investments.

In terms of infrastructure, this Government has and will continue to invest a record amount. More than $68 billion in capital is forecast to be spent by central government on infrastructure over the next five years.

For comparison from 2019 to 2023, $50.8 billion in capital was spent on infrastructure.

Infrastructure Investment Summit

However, we know achieving economic growth is not all about government. We can’t unlock New Zealand’s potential without the private sector.

So, we are also focused on attracting long-term private capital, capacity, and capability into our economy.

To do this, earlier this month, the Prime Minister and I hosted the New Zealand Infrastructure Investment Summit in Auckland, which was attended by over 100 world-leading institutional investors, private investment firms, and construction companies.

It was a huge win for our country, and it was good to see some of you there.

During the Summit, we reaffirmed New Zealand’s position as being open for business, and as a safe and strong country to invest in.

Overall, we focused on three areas:

1. First, New Zealand’s infrastructure vision and upcoming public infrastructure opportunities,
2. Second, changes to policy, regulation, and legislation to make it easier to do business here, and
3. Third, other investment opportunities in growth sectors and the Māori economy.

I just want to briefly touch on the first area.

It was great to get investable and developable opportunities in public infrastructure to market, including Christchurch Men’s Prison PPP and the Northland RoNS PPP.

But as Minister for Infrastructure, I think showcasing our long-term infrastructure pipeline made the biggest impression.

This is what will give the private sector confidence to stay here and invest in people and equipment.

Firms just want to know: What’s next.

For example, the Italian tunnelling company Ghella was preparing to leave New Zealand after completing the 16.2-kilometre Central Interceptor tunnel in Auckland. But following presentations on the pipeline and the positivity of the Summit, Ghella have decided to keep their workers, expertise, and tens of millions of dollars of plant, equipment, and associated services here.

Similarly, Plenary, an infrastructure investment firm managing more than $100 billion in assets has also committed to opening an office in New Zealand and to bidding on at least five PPPs over the next five years due to the PPP pipeline.

Many global firms showed an interest in New Zealand.

When Guido Cacciaguerra of Webuild, a multinational construction and civil engineering firm, said “the Italians are coming back”, all I could think was – yes, that’s fantastic.

These guys helped us construct tunnels for the Tongariro hydro scheme in the 1960s.

It’s partnerships like these we need to help us close our infrastructure deficit, and we are committed to keep this momentum going.

Overcoming funding and financing challenges in infrastructure and housing

Now, let’s move onto overcoming funding and financing challenges in infrastructure and housing.

Public infrastructure in New Zealand has historically been primarily funded by taxpayers or ratepayers.

But our heavy reliance on this blunt approach is not serving us well and has led to perverse outcomes including congestion, run-down assets, and the unresponsive provision infrastructure – contributing to unaffordable housing.

The scale of New Zealand’s infrastructure challenge means we cannot continue the status quo – we need to leverage private capital and alternative funding and financing tools.

I want to outline several pieces of work that interact with debt capital markets, including:

• The establishment of the National Infrastructure Funding and Financing Ltd– or NIFFCo,
• Treasury’s new Funding and Financing Framework,
• The refresh of the Government’s PPP policies, and
• New funding and financing tools for infrastructure to support growth.

Establishment of NIFFCo

Let’s start with NIFFCo.

On 1 December 2024, we established NIFFCo to carry out three key functions:

• Its first function is to act as the Crown’s ‘shopfront’ to facilitate private sector investment and interest in infrastructure – this includes receiving and evaluating any Market Led Proposals, or Unsolicited Bids.
• Its second function is to partner with agencies, and in some cases, local government, to provide expertise on projects involving complex procurement, alternative funding mechanisms and private finance – including PPPs and IFF Act transactions.
• Its third function is to administer central government infrastructure funds.

When you decide to join us in transforming New Zealand’s infrastructure, you will likely work with NIFFCo.

Overall, I expect NIFFCo will help unlock access to capital for infrastructure and give the private sector a clear and knowledgeable Government-side partner to work with on projects and transactions.

So, if you want to put forward a project, are looking for an opportunity to invest in New Zealand infrastructure or want to partner with Government – NIFFCo is open for business.

NIFFCo will also lift the government’s commercial capability and help us be a better client of infrastructure. It will do this by deploying expertise into agencies that are working on projects involving private finance and alternative funding mechanisms.

This includes, but is not limited to, projects involving traditional loans, equity investments, PPPs, developer levies, beneficiary levies, concessions, or other value uplift mechanisms.

Funding and Financing Framework

Now, let’s talk about Treasury’s new Funding and Financing Framework.

Last year, Treasury released this Framework to broaden the funding base for Crown investments, and to utilise private capital where efficient.

It provides guidance to agencies that they should, in the first instance, seek user or beneficiary pays to fund new infrastructure projects rather than defaulting to taxpayer money.

I expect proposals from sectors like transport, water, energy, housing, and adaptation to demonstrate how user or beneficiary pays can contribute towards funding.

More utilisation of user- and beneficiary-pays will provide greater opportunities for the private sector, including debt capital markets, to participate in public investments.

We want to use the government’s balance sheet more strategically and apply good commercial disciplines when deciding how to financially support a proposal – essentially providing “just enough support” to make proposals feasible.

This will mean we can deliver more projects, and channel support to sectors where it is appropriate for the Crown to be the primary funder, like in health and education.

PPP Framework and other guidance

To match our more commercial Funding and Financing Framework – we also needed to modernise the Crown’s policies and contracts, particularly in the PPP space.

After extensive engagement, in November last year, we released a Blueprint outlining how the government will approach future PPPs.

There are several key elements in the refreshed Blueprint that will foster a more appealing market for all participants:

• A more practical approach to risk transfer,
• Guidance for agencies on bid cost recognition,
• Enhancing the Interactive Tender Process,
• Allowing reasonable price validation to occur during the procurement process,
• Improving the process for managing claims and dispute resolution, and
• Increasing the capability and resourcing of the Crown so that we can be a better client.

Our approach is to be smart about private capital and use it in a way that unlocks investment, enhances incentives for on-time on-budget delivery, and brings more maturity to the design, build, and maintenance of projects.

The new PPP Blueprint sits alongside new Strategic Leasing Guidance, and Guideline for Market Led Proposals.

New infrastructure funding and financing tools to get more houses built

Let’s move onto new infrastructure funding and financing tools to get more houses built.

As Minister of Housing, I am committed to – well, more accurately obsessed with – fixing our housing crisis.

We are not a small country by land mass, but our restrictive planning system, particularly restrictions on the supply of urban land, has created a scorching hot land and housing market driven by artificial scarcity.

We are changing that by allowing our cities to grow up and out. But this won’t be enough on its own. We also need to enable the timely provision of enabling infrastructure.

Put simply, you can’t have housing without water, transport, and community facilities.

However, under current settings councils, infrastructure providers, and developers face significant challenges to fund and finance enabling infrastructure for housing.

We want to move to a future state where funding and financing tools enable the responsive supply of infrastructure where it is commercially viable to build new houses.

This will shift market expectations of future scarcity, bring down the cost of land for new housing, and improve incentives to develop land sooner instead of land banking.

To achieve this future, our overarching approach is that growth pays for growth.

Last month, I announced five changes to our infrastructure funding and financing toolkit to support urban growth.

I won’t cover all of these. But the most relevant to you are changes to the Infrastructure Funding and Financing Act (IFF) Act.

The IFF Act allows the creation of a Special Purpose Vehicle to raise finance for projects, where the cost is repaid through a levy charged to properties that benefit from a project over a period of about 20 to 30 years.

We are making several remedial amendments to improve the effectiveness of the Act, particularly for developer-led projects, which will make the process simpler and cheaper.

We are also broadening the Act to enable levies to be charged for major transport projects – a gamechanger in New Zealand for funding city-shaping projects.

These changes will lead to the Act being more effective, efficient, and utilised more often.

I expect, private capital will have far more opportunity to support public infrastructure projects.

Reducing debt financing barriers for CHPs

Now, I would like to move onto actions the Government is taking to reduce debt financing barriers for Community Housing Providers, or CHPs.

As I noted earlier, we are fixing the housing crisis by getting the underlying market fundamentals right. This is the single best thing we can do to make housing more affordable.

At the same time, I recognise that these changes will take some time and that there will always be New Zealanders who need housing support.

This Government believes in social housing, and we believe the CHP sector and private capital have a greater role to play in this space.

Currently, CHPs account for 16% of our social homes – or around 13,000 houses.

My ambition for the social housing system is to create a level playing field between CHPs and Kāinga Ora.

I’m obsessed with building houses across the housing continuum for people who need them. But I am agnostic as to whether those houses are delivered by CHPs or by the government.

I call this competitive neutrality. In some areas and for some people, CHPs are the answer. In other areas, Kāinga Ora is the way to go.

However, we don’t have competitive neutrality right now.

As I am sure you are aware, Kāinga Ora can borrow at a small margin above the Crown’s cost of financing, while CHPs effectively get access to finance at commercial rates.

Update on last year’s announcement

In November last year, I outlined three actions we are taking to help CHPs access borrowing to deliver housing:

The first was making $70 million of Operating Supplement available upfront, unlocking equity CHPs need to raise debt.

The second was making changes to IRRS contracts that makes the revenue stream more attractive for financiers.

And the third was to review the use of leasing to provide social housing.

I’ll just give you a quick update on where those are at.

The Ministry of Housing and Urban Development are implementing updated criteria for providing Operating Supplement upfront to support delivery of the 1,500 CHP places committed through Budget 2024.

The updated criteria will focus on the basics – strategic alignment, value for money, deliverability, and whether upfront funding is really needed to unlock financing. We are also removing unhelpful eligibility requirements and allowing larger CHPs and projects in urban areas to access upfront funding, where appropriate.

On updates to the IRRS contracts, HUD are making the following changes that will be in place for the contracting of places from late May onwards:

• Additional compensation where the Termination for Convenience clause is exercised on Build to Lease projects,
• Limiting the ‘step-in’ period to six months, and
• Providing a Financier Direct Deed when requested on all Build to Own projects.

These changes will go some way to reducing real and perceived risk to financiers, although I acknowledge that there is more work to do.

On the use of leasing to provide social housing, HUD has moved to an ownership-agnostic approach.

Leasing could be useful where CHPs want to leverage their local expertise in managing social housing, while partnering with developers who could leverage their larger balance sheets to access finance that a small CHP could not.

CHP credit enhancement

Last year, I also announced that the Government would explore a credit enhancement intervention for CHPs, so that they can access suitable debt.

I am pleased to announce today that Cabinet has agreed to establish Crown lending facilities of up to $150 million for the Community Housing Funding Agency (CHFA) to cover:

• an interim lending facility to be provided in early April to support CHFA’s immediate financing needs, and
• a final liquidity facility.

In addition to this, the Minister of Finance intends to offer a loan guarantee scheme to banks to support their CHP lending.

Both of these interventions align with our market-led approach to fixing our housing crisis, and our transition to more efficient and effective Crown investment.

The liquidity facility and loan guarantee scheme will provide critical support whilst we get the system right.

Let’s start with CHFA –

CHFA was launched by Community Finance in 2024 and aggregates the finance requirements for CHPs around New Zealand, unlocking lower cost finance at scale to support the delivery of social housing.

The CHFA is largest lender to CHPs in New Zealand already indicating they are providing lending solutions highly valued by the sector.

A Crown liquidity facility and credit rating will allow CHFA to lend to more CHPs on a much larger scale.

This will lay the foundation for CHFA to borrow billions of dollars, supporting not just the delivery of social housing, but also CHPs’ broader affordable housing portfolios.

Housing Australia has a similar model – the Affordable Housing Bond Aggregator (AHBA).

Since its inception in 2018, Housing Australia has approved around $4.5 billion in AHBA loans to support the development of more than 18,800 social and affordable homes.

The AHBA loans have helped the sector save an estimated $800 million in interest and fees.

I want this for New Zealand too.

Finally, on the loan guarantee scheme, the Minister of Finance and I have endorsed key design criteria as a starting point for Government’s engagement with banks.

I don’t want to get into too much detail, I will leave that to officials –

But, at a high-level, I expect that this scheme will encourage participation among banks and enable them to pass on meaningfully reduced interest rates and other lending accommodations to CHPs.

Relatedly, last year, the Minister of Finance wrote to the Reserve Bank asking them to look further at the risk weights for lending to CHPs. The Bank intends to consult on potential changes in the middle of 2025. This process may also lead to a meaningful reduction in borrowing costs for CHPs.

Overall, I am really excited about how these changes will support the CHP sector – we heard you, and we hope these changes enable you to grow and do more good work.

Conclusion

Delivering on this Government’s vision for growth and higher living standards will require a strong partnership between government, investors, and the private sector.

Capital markets will play a pivotal role in financing New Zealand’s infrastructure future, and I encourage all of you to explore how your expertise and resources can contribute to this effort.

We are committed to creating a stable, predictable, and investable infrastructure and housing environment – one that supports economic growth, enhances productivity, and improves the quality of life for New Zealanders.

Together, through innovation and partnership, I am confident we can build a more prosperous New Zealand.

I look forward to your insights and collaboration.

Thank you.

Source: NZ Music Month takes to the streets

Good morning.

I’m excited to be here at the Residential Development Summit.

Thank you to the Property Council for hosting this event.

Residential developers, investors, and the broader property community will play a key role in fixing New Zealand’s housing crisis.

We need your knowledge, expertise, and big ideas to help New Zealand’s housing system grow. We need to go up, we need to go out, we need more housing choice, and we need more tenure types.

Today I’d like to give you an update on our Going for Housing Growth programme, and how changes to the Resource Management Act (RMA) will make it simpler and easier to supply the housing that New Zealanders so desperately need.

I will also be announcing actions Government has agreed to that will enable more greenfield development – allowing our cities to grow out.

Letting our cities grow

I am, unapologetically, an urbanist – dare I say, an ‘urban nerd’ – and a proponent of growth.

I won’t dwell on our housing challenge. You’ve all heard me bang on about that before. Our housing crisis is holding New Zealand back socially and economically.

Report after report and inquiry after inquiry has found that our planning system, particularly restrictions on the supply of urban land, are at the heart of our housing affordability challenge.

I believe that fixing our planning system by making it more enabling and getting the fundamentals right in housing are the best things we can do to unleash New Zealand’s potential.

Getting this right will:

• lift economic growth and productivity,
• reduce the cost-of-living pressure from housing, and
• ensure New Zealanders can enjoy a higher standard of living.

As the Minister Responsible for RMA Reform, Minister of Housing, and now Minister of Transport, I get up every day determined to try and make a difference.

Update on Going for Housing Growth

Let me start with an update of our Going for Housing Growth programme.

It has three pillars:

• Pillar One: freeing up land for development and removing unnecessary planning barriers,
• Pillar Two: improving infrastructure funding and financing to support urban growth, and
• Pillar Three: providing incentives for communities and councils to support growth.
• Housing Growth Targets for Tier 1 and 2 councils to “live-zone” 30-years of housing demand,
• making it easier for cities to expand,
• strengthening the intensification provisions in the National Policy Statement on Urban Development (NPS-UD),
• putting in new rules requiring councils to enable mixed-used development, and
• abolishing minimum floor areas and balcony requirements.

Pillar One

We have made good progress on Pillar One which includes:

I announced these changes last year and officials have been working hard on the finer details.

The changes I announced last year build on the NPS-UD brought in by the previous government in 2020, but they obviously sit within the existing RMA structure.

As you’ll have seen on Monday, the Government is replacing the RMA entirely with two new laws.

This presents an obvious sequencing problem. We are committed to housing growth targets, strengthening density requirements, and so on.

This year we will consult on changes through Pillar One, as intended. You can expect that around May.

However, if we implemented them straight away in 2026, Councils would be forced to conduct expensive and lengthy plan changes – only to start all over again a year or so later once the new RMA comes into effect.

So, we’ve made the pragmatic decision to implement Pillar One of our Housing Growth changes as part of the replacement of the RMA.

This also allows us to think about housing growth targets in the context of standardised zones.

So, councils will implement Phase 3 of the Resource Management reforms through development of new plans, starting from 2027.

Rest assured, Pillar One will be ready to go for Councils’ 2027 Long Term Plan cycle.

Pillar Two

Now, let’s talk about Pillar Two – improving infrastructure funding and financing.

Pillar One is about upending the system by flooding the market with development opportunities and fundamentally making housing more affordable.

But, freeing up urban land is not enough on its own. We also need to ensure the timely provision of infrastructure.

Put simply, you can’t have housing without land, water, transport, and other community infrastructure.

But under the status quo, councils and developers face big challenges to fund and finance enabling infrastructure.

So, last month I announced five changes to our infrastructure funding and financing toolkit to get more houses built.

• The first is replacing Development Contributions (DCs) with a Development Levy System, where growth pays for growth,
• The second is establishing regulatory oversight of these Levies to ensure charges are fair and appropriate,
• The third is increasing the flexibility of targeted rates,
• The fourth is making changes to the Infrastructure Funding and Financing Act (IFF Act) that will make it more effective and simplify processes, and
• The fifth is broadening the IFF Act so that beneficiaries can help pay for major transportation projects.

I won’t go into too much detail here today.

But at a high-level, these changes will help create a flexible funding and financing system to match our flexible planning system.

These are some big changes, and it will take some time to get them right.

Our aim is to have legislation in the House by September this year, to come into effect next year.

Councils will be able to make the shift to development levies on the same timeline as the 2027 Long Term Plan cycle.

You can see, I hope, a lot of really good things coming together around 2027.

Pillar Three

On Pillar Three, officials are working away on this, and we will have more to say later this year.

Changes to RMA will support more housing

I want to quickly talk about how RMA reform will make it simpler and easier to supply the housing New Zealanders need.

For example, standardised zones will be a game changer.

I completely agree with urban economist Stuart Donovan – zoning is so balkanised that even large developers tend to stick to one or a few main centres as branching out requires reconfiguring to different planning rules.

Developers currently face a Gordian knot of these rules.

Maximum building heights of 9m in Kapiti versus 8m in Dunedin. Porirua requires an outdoor living space of at least 20m² for a medium-density residential unit – in the Manawatu it’s 36m². In Dunedin, maximum building site coverage can vary from 30% to 60% whereas in Taupō it varies from 2.5% to 55%.

Councils are even getting involved with things as niche as whether it is possible for someone to see the TV from the likely location of their couch – or whether doors should face out for “privacy” or in for “inclusion and community”.

I get email after email about this stuff. People stop me in the street to tell me about it. It is utterly out of control.

Councils should be focusing on engaging with communities, looking at capacity in the network, and making decisions on where growth is most appropriate.

And we need to grow both up and out.

For the remainder of this speech, I want to focus on what we are doing to enable more greenfield development.

Changes to the NPS-HPL

The National Policy Statement for Highly Productive Land – or the NPS-HPL, was introduced by the last Government to protect New Zealand’s highly productive soils. This piece of national direction is intended to boost food security for both our domestic food supply and primary exports.

However, it is clear that it has gone too far. As currently drafted, the NPS-HPL protects a total of 15 percent of the country’s landmass. That’s nearly as large as the entire Canterbury region.

This protected land often surrounds our biggest and fastest growing cities where growth is busting to get out.

I have lost count of the number of developers who have come up to me since this has been introduced, frustrated that they are unable to secure land for greenfield housing to be developed.

There needs to be a balance between how we protect our most productive land with our need for more housing to tackle our housing crisis.

Right now, that balance is out of whack.

National campaigned on amending the NPS-HPL to remove the lowest classification of land protected, what is known as LUC-3.

This kind of land is not the golden soils we need in Pukekohe – instead, it’s much lower quality land that is good for housing.

Despite being a lower quality of soil, two thirds of land protected by the NPS-HPL is classified as LUC-3.

I am pleased to announce today that Cabinet has agreed to remove LUC-3 from the NPS-HPL this year, fulfilling our election promise.

Across the country, this will open up land for housing roughly equivalent to the size of the Waikato region.

Alongside this, we are going to consult on whether we should establish what we’ve called ‘special agriculture zones’ around key horticulture hubs like Horowhenua or Pukekohe. This would essentially protect LUC 1, 2 and 3 land when it is grouped together in a natural configuration.

We need more houses, and we need more greenfield development.

Removing these restrictions will allow us to have our vegetables and eat them too.

Changes to the NPS-HPL will be progressed as part of our National Direction changes in Phase 2 of our RMA reforms.

I will announce further details about the timing and shape of that package tomorrow but wanted to announce this change today to highlight our Government’s commitment to greenfield housing.

Greenfield Model

To further demonstrate this commitment, we are also taking action to get more greenfield houses built in the near term.

I am pleased to announce that the Government will provide finance to developers to ensure more medium-sized greenfield developments – think around 1,000 to 2,000 dwellings – are enabled through the Infrastructure Funding and Finance Act.

We are calling this the Greenfield Model.

The Government will support National Infrastructure Funding and Financing Ltd – or NIFFCo – in lending up to $100 million to developers for infrastructure needed to enable new greenfield housing.

This model is being funded using existing unallocated funding within NIFFCo.

Here is how it will work.

NIFFCo will lend to an IFF Act Special Purpose Vehicle at a very competitive interest rate during the development phase of a project.

Then, the debt will be refinanced to private markets once the development is complete, with the funding ultimately being repaid by future homeowners through an annual levy.

The development phase of a project is often the riskiest – and private financiers reflect this by charging higher interest rates.

NIFFCo’s loan will provide lower cost financing to developers over the development period by charging approximately what private financiers would charge for completed developments.

This is a big win for growth.

NIFFCo will also be able to recycle capital into new projects after the five- to seven-year development period.

We are putting the Greenfield Model in place as a targeted interim measure while our Going for Housing Growth policy and Local Government reforms bed-in from 2027 or so onwards.

To date, the IFF Act has not been used for greenfield housing developments.

The Act is complex, and levies are deemed too expensive. The higher than anticipated levies are also much less favourable than using DCs which are often artificially low, under-recover growth costs, and are cross subsidised by rates.

The economics of IFF Act levies just don’t make sense right now.

The changes we are making through Pillar Two, particularly around improvements to the IFF Act and our shift from DCs to Development Levies, will do the heavy lifting to fix incentives and put in place a more effective infrastructure funding and financing system where growth pays for growth.

But, as fast as we are going on this, it won’t happen overnight.

So, the Greenfield Model is a good short-term, cost-effective intervention as the lower interest rate provides benefits of around $10,000 per dwelling.

For comparison, the Infrastructure Acceleration Fund, which was set up to support new housing by the previous government, cost around $28,000 per house.

This model will support growth that otherwise wouldn’t have happened – or would have happened much later.

I am excited to just crack on.

Conclusion

Let me finish by saying that solving our housing crisis is one of this Government’s top priorities.

And to be honest, it is my number one priority.

I look forward to working with you to grow up and out, and to deliver more housing that New Zealanders need.

Thank you.

Source: NZ Music Month takes to the streets

Check against delivery.

Kia ora and thank you so much for inviting me here today. It’s great to be with you all.

Can I start by thanking Fran O’Sullivan for her hard work in organising and supporting this annual event and the also NZME for sponsoring the event as always. 

I’d also like to acknowledge our Deputy Mayor Desley Simpson, Councillor Richard Hills, and my colleague the Honourable Chris Bishop, the Minister of many things relevant to Auckland’s future and success – Transport, Housing, RMA Reform, Infrastructure – the list goes on. He is also, importantly, Leader of the House because you can’t change the law if he doesn’t let you change the law, so it’s very important to have the Leader of the House on site – great to see you here. 

Also, the opposition spokesperson for Auckland, Carmel Sepuloni, and Shanan Halbert – lovely to see you here today as well.

It’s always good to be with you all as leaders of our city – people who believe in Auckland’s future and are committed to its success.

This shared commitment mirrors our Government’s focus on Going for Growth – driving positive change for this city, and delivering real results.
 

Context
 

As a Government, we have set a clear, decisive plan to get New Zealand back on track.

There is no doubt that our country – and this city – faces significant challenges.

At the heart of those challenges are the economy, inflation, and interest rates, which have been tightening household budgets and stifled economic growth. 

The Government has spent the last 18 months focused on the basics – rebuilding our economy, restoring law and order, and delivering better public services, particularly in health and education.

By reducing wasteful spending, reining in inflation, and lowering interest rates, we are easing the pressure on families and mortgages and giving businesses the certainty they need to grow and invest.

We campaigned on this, and we are starting to see the green shoots of economic recovery.

Inflation is back within the one to three per cent band, and interest rates are falling. This is good news for Kiwi households and businesses and is critical to easing the cost-of-living pressures for New Zealanders.  

Just last week, it was confirmed that our economy has also started to turn the corner, with GDP growing by 0.7 percent in the three months to December – ahead of what the economists were projecting – welcome news after a long period of economic decline, which we inherited, leaving Kiwis feeling poorer. 

Under Christopher Luxon’s leadership, our Government is Going for Growth, and working tirelessly to sustain this momentum, because a stronger economy means more jobs, better incomes, and more opportunities for Kiwis to get ahead. 

Rebuilding our economy also requires discipline across every part of government, local and central – delivering the services and infrastructure that Kiwis need, while ensuring every dollar is spent wisely to produce tangible results. 

This disciplined approach is especially crucial for Auckland – home to 34 per cent of our population and generating 38 per cent of New Zealand’s GDP.

Rebuilding our economy means the Government can continue to invest in the priorities facing our city, whether that is better schools, more doctors and nurses in our hospitals, or the infrastructure needed for our fast-growing city.

As Minister for Auckland, my role is to champion this city’s interests and ensure it receives the attention and investment it rightfully deserves from central Government, and I am proud of what we have already achieved as a Government. 

Delivering for Auckland

Since entering government, we have moved quickly deliver on our promises and get Auckland back on track. 

We axed the Auckland Regional Fuel Tax, removing 11.5 cents per litre from the cost of fuel.

We delivered tax relief for hardworking Aucklanders, with average-income households receiving up to $102 a fortnight.

We have also prevented a 25.8 per cent increase in water rates through our Local Water Done Well plan, ensuring Aucklanders have access to affordable and sustainable water services.

This will save Aucklanders around $899 million in water and wastewater charges over four years through the Watercare Charter. 

I want to acknowledge the team from Watercare for the excellent work they’ve done, as well as Auckland Council who have partnered with the Government to enable this deal. 

The deal with Auckland Council to financially separate Watercare has also built huge confidence in the pipeline of water infrastructure in Auckland. 

A major sign of this confidence was the decision by tunnelling company, Ghella, who are building the Auckland Central Interceptor, to keep their tunnel boring machine in Auckland, following the completion of the central interceptor tunnels this Friday. They see the growing pipeline of water infrastructure projects that require delivering in our city. 

This is what real confidence in the infrastructure pipeline looks like and it’s a privilege to play a part in delivering that. 

We have also opened new state-of-the-art radiology equipment at Auckland City Hospital’s Regional Cancer and Blood Service.

We’ve deployed additional cops on the beat – raising beat cops to 51 in the CBD – strengthening law and order to improve safety in the inner city and across Auckland.

We scrapped Auckland Light Rail, halting a project that haemorrhaged over $228 million without delivering a single metre of track.

We have introduced legislation for Time of Use Schemes, which will support the Government’s and Auckland Council’s efforts to reduce congestion across the city and improve efficiency of our roading network. 

We set a clear direction for both roading and public transport projects across Auckland, including the Northland Corridor, Mill Road Stage 1, the North-West Alternative State Highway, the Northwestern Busway and the Airport to Botany Busway so Aucklanders can have a clear plan of future transport projects for the city – both roading and public transport connections that this city needs for the future. 

And we are restoring democratic accountability for transport decisions, ensuring Auckland ratepayers have a genuine say in shaping our city.

Our track record as a Government demonstrates our commitment to delivering real outcomes for Auckland and getting our city back on track.

What’s next for Auckland

But the question is what’s next for Auckland?

While we’ve achieved a lot in a short space of time, our work isn’t done. There is much more to do. Two key areas of work that will be underway over the next 12-18 months, which I think are critically to our city’s success, is capitalising on the benefits of the City Rail Link and developing an Auckland Regional Deal.

The next 12-18 months see significant change in Auckland as we look forward to the completion of the City Rail Link. 

This project, started under the last National Government, will be truly transformational for the city and unlock huge benefits for Aucklanders, including reduced travel times and increased opportunities for development along our rail corridor. 

Once complete, the City Rail Link will be truly city shaping, and will have a significant impact beyond just making transport more accessible for Aucklanders. 

Unlocking the benefits of the CRL is key to Auckland’s success. Both the Government and Auckland Council have invested billions of dollars into this project and we must make sure that we are getting the benefits from it. 

Whether it is the work Transport Minister Chris Bishop is delivering with Auckland Council to remove level crossings to keep traffic moving safely in our suburbs, or it is unlocking development around train stations across Auckland, we must make sure that the city maximises the benefits. 

The Government has also recently welcomed proposals around regional deals, and I welcome Auckland Council’s proposal which has been put forward as part of that process. 

I hope that maximising the City Rail Link benefits can be part of that deal because that is something we must jointly ensure happens for the city. 

Regional deals are an opportunity to bring Councils, Government, Business, Iwi and community together with a longer-term view than just the three-year political cycle, about what’s need to enable the key issues to be unlock, whether that economic growth, productivity, housing, or infrastructure. 

I’m looking forward to the opportunity we have before us to build on the work already underway with Auckland Council, and how a regional deal could support that. 

As Minister of Auckland, I will be advocating for Auckland to be the first cab off the rank for a regional deal so we can build on the strong progress we have already made for Auckland in the past 18 months. 

A regional deal will be a long-term plan for the city, outlining how both local and central government can work together to unlock economic growth in our city, build houses, and deliver the infrastructure needed for this city. 

It is also an opportunity to outline how central and local governments need to work together to solve problems and deliver tangible solutions. 

Taxpayers and Ratepayers are ultimately the same people – and they expect central and local governments to work together to deliver on their priorities over the long term. 

Regional deals are an opportunity to do just that and I will be working closely with Auckland Council on their plan to deliver a Regional Deal for Auckland. 

But, great infrastructure and economic reforms also need high-quality public services, particularly in health, that are efficient and put patients first.

Keeping Auckland healthy

That’s why we’re determined to ensure Aucklanders have timely, quality access to healthcare.

A lot has changed since I last spoke to you in March, when I was talking about potholes – but even Bernard Orsman managed to find a pothole at Greenlane Hospital carpark yesterday, and we got it fixed. 

Some might say I traded one challenge for an even bigger one. In a growing city like Auckland, we need a resilient health system, so that rising demand from a growing population doesn’t mean waitlists balloon out even more than they already have.

The Government is putting more money into health than ever before and we are focussing our health system on delivering the timely and quality healthcare for all New Zealanders. 

To achieve this – we have restored national health targets – which are key to delivering timely and quality healthcare. 

Unfortunately over the last 6 years, we’ve seen the results go backwards for patients, whether its Kiwis waiting longer in emergency departments or elective surgeries, which increased from 1000 people more than four months in 2017 to over 27,000 waiting more than four months in 2023.

It is unacceptable and New Zealanders deserve better. Health targets have been restored to deliver better outcomes for patients because what gets measured gets managed.

But performance also depends on infrastructure. Auckland’s population is growing, so we need modern hospitals to keep up.

For the expectant new mother needing maternity care.

For the elderly patient needing a hip replacement.

For the injured tradie needing urgent care after an accident on the job.

Health Infrastructure Plan

At the recent New Zealand Infrastructure Summit, I highlighted 67 health infrastructure projects – valued at $6.39 billion – which are in the pipeline across the country. 

$1.5 billion of that is in Auckland, including Manukau Health Park here in Auckland, large scale remediation programmes across our estate at Auckland Hospital and Greenlane Hospital.

But at current estimates, we cannot build capacity fast enough to meet the demands of a growing population. 

Today, I am providing an update on the Health Infrastructure Plan that Cabinet is developing. This plan will set a direction for the next 10 to 20 years to ensure that as a country, we build the right things in the right places at the right size and scale.

While each project will require its own business case, the plan will set a long-term view of health infrastructure needs across the country and gives Health New Zealand a clear plan to work upon. 

We know that hospitals across the Auckland region are experiencing pronounced bed shortages, which are expected to increase as the population grows.

South Auckland in particular is one of our fastest-growing communities, with significant health challenges. 

This community experiences higher rates of infectious conditions and long term conditions such as diabetes, cardiovascular disease, and chronic respiratory disease. 

The health needs of South Auckland are compounding, and this impacts the whole region, with both Middlemore and Auckland City Hospital under pressure to service the south Auckland population – and this pressure will only continue to grow.

A new site in South Auckland has long been acknowledged by the region’s health planning as necessary to meet the growing demand. 

Today, I’m confirming that as part of the Health Infrastructure Plan, a new major hospital in South Auckland is being explored. 

The next steps involve detailed planning by Health New Zealand and securing land to accelerate development.

This hospital would work alongside Middlemore, adding more beds, modern surgical theatres, and expanded emergency services – easing pressure on the system and improving outcomes for Aucklanders. 

Kiwis deserve better than long waits in overcrowded emergency departments and long waits for surgery. Patients come first, and investing in infrastructure is key to delivering that.

The Health Infrastructure Plan has been considered by Cabinet and will be published in the coming weeks 

Conclusion

We have a clear growth agenda for Auckland. We’ve taken decisive action to ease the cost of living, restore law and order, and keep our city moving.

Auckland must be a city that works for its people – where businesses thrive, families can afford to live, people can travel quickly and safely, and everyone has access to timely, quality healthcare.

That’s my focus.

Thanks very much for having me here.

Thank you, and I look forward to continuing this work alongside you all.

Source: NZ Music Month takes to the streets

I am very pleased to open the redeveloped George Forbes Building at Lincoln University.

The original building was opened by Governor-General Viscount Cobham on 11^th August 1960. He inherited Viscount Cobham from his father but his birth name was actually Charles Lyttelton, Lyttelton being named after his great grandfather.

The building has undergone significant changes since then that have made it a notable landmark in the area.

This latest development creates a vibrant new student hub, which will contribute to a world-class campus.

I know Lincoln has a strong focus on its students, both in terms of their campus experience but also a commitment to supporting their success in study and moving into employment.

This space demonstrates your focus on your learners and their future, by providing a mix of areas for relaxation and recreation, as well as places to work and collaborate with others.

And collaboration is one of the hallmarks of the university.

We can see it today in your strong domestic and international partnerships in research and teaching.

An excellent example is Bioprotection Aotearoa, a Centre of Research Excellence that features a collaborative partnership of 11 universities and CRIs to train the next generation of bioprotection researchers. It also delivers pioneering, multi-disciplinary research to protect our productive and natural landscapes from pathogens, pests and weeds in a warming climate.

Scientists from Lincoln along with Plant & Food Research have contributed to the discovery of a new gene – the PAR gene – that will make it possible to produce seeds from crops that are genetically identical to the mother plant, without pollination. This was done with scientists in the Netherlands and Japan, and it is expected to lead to major innovations in plant breeding.

You also have a strong history in commercial collaboration. The New Zealand Agricultural Engineering Institute (NZAEI) established in 1965, now Lincoln Agritech, has a history of finding practical engineering solutions to agricultural issues, supporting sustainable production. That contributes social, environmental and economic benefits to the community but also to your researchers and helps maintain the university’s reputation as a partner in innovation.

It’s not an exaggeration to say that Lincoln has been making vital contributions to our country and to the wider world, in agriculture, horticulture and viticulture, for nearly 150 years. That’s quite an achievement and something to be proud of.

Your focus on the agricultural sector has positioned you well in our nation’s economy and helped build our reputation as an agricultural innovator, as well as a successful and reliable supplier of high-quality food and associated technologies.

These are some of the things that place this small university in the top 150 for agriculture and forestry, according to the QS World University Rankings.

It is also in the top 150 for hospitality and leisure, another significant industry for economic growth, and one that relies for much of its appeal on the quality of our rural environments and the products that are so important to this country’s economy.

I know that you have a long-term plan which is driving the shape of the campus, with both new and redeveloped facilities.

With Plant & Food Research and Landcare Research across the road, we have a hub of research excellence that is important to New Zealand’s agricultural future.

These combine to make Lincoln an attractive place to study. You have rapidly rebuilt your domestic and international student population, and achieved a position of financial sustainability while continuing to be recognised as a leader in research for the land-based sectors.

Keeping all of your achievements in mind, it gives me great pleasure to turn to the opening of this new development and the opportunities still to come.

I want to thank a great-grandson and namesake of George Forbes, who provided very helpful information on his history. I know he was invited today and I hope he is here.

The Right Honourable George William Forbes was MP for Hurunui from 1908 to 1943 and Prime Minister from 1930 to 1935. He was also the first leader of the National Party.

Before that he was farmer in Cheviot – on his farm called Crystal Brook – which he farmed until his death. He had a keen and enduring interest in the industry throughout his political career, and he regularly attended agricultural events here at Lincoln.

The George Forbes Memorial Library was developed in recognition of his advancement of the interests of Canterbury Agricultural College, as it was then, in the mid-1920s, when plans for Massey Agricultural College were underway.

The library has moved but the building retains his name. It is now the new entry point to the university.

For learners just starting their tertiary education journey, this will be a place of welcome and connection with each other and the studies that will support their success in years to come.

Many Lincoln alumni have gone on to play, and continue to play, prominent roles in New Zealand life. There is an impressive list of scientists, All Blacks and business leaders, as well as politicians and media personalities, who have passed through these halls. There are a few international leaders in there as well.

Lincoln was a key part of their leadership journey.

That’s as it should be. We expect our tertiary institutions to produce leaders in all areas – science, arts, public service, sports, community and commerce.

I believe George William Forbes would be proud and pleased with this place and the contribution Lincoln is continuing to make to New Zealand, as well as the continuing association of his name with the university.

Thank you Chancellor and Vice Chancellor for your continuing efforts, and congratulations to you and the university community on this occasion.

I now take great pride in officially declaring the George Forbes Building open.

Nō reira, tēnā koutou, tēnā koutou, tēnā koutou katoa.

Source: NZ Music Month takes to the streets

[Comments following the bilateral meeting with United States Secretary of State, Marco Rubio; United States State Department, Washington D.C.]

* We’re very pleased with our meeting with Secretary of State Marco Rubio this afternoon.

* We came here to listen to the new Administration and to be clear about what is important to New Zealand. Today, we enjoyed substantive and productive discussions with Secretary Rubio across a broad range of issues.

* There’s a lot happening in the Indo-Pacific, and indeed our world. It’s a seriously valuable time to be here in Washington DC.

* Secretary Rubio has had a long career in foreign policy and it was helpful to re-connect with him and hear his insights into what is going on.

* This has been a very successful visit to Washington DC, meeting with a wide range of representatives of the Trump Administration.

* We agreed that we should continue to work together for a free, open and prosperous Indo-Pacific. And we talked about all the areas where New Zealand and the United States have interests in common. These include the prosperity and stability of the Pacific Islands, space and technology, as well as Antarctica where our cooperation has been deep and longstanding.

* This visit has provided the starting point for considering what constructive cooperation between New Zealand and the United States might look like in the months and years ahead.

* This is just the first step. We will now go back to New Zealand to discuss with Cabinet colleagues what we have learned here in Washington DC.

* With Secretary Rubio, we have agreed to remain in close contact in the months ahead. We will no doubt see each other again later this year, whether at a regional meeting or back here in DC.

Source: NZ Music Month takes to the streets

Good afternoon, everyone. Thanks, Murray, for that introduction.

It’s a pleasure to be speaking with you here in New Zealand’s capital city of growth, at this launch of the Project Auckland report.

Can I start by acknowledging my parliamentary colleague Hon Simeon Brown. He is unquestionably the biggest advocate for Auckland I know – and is a staunch advocate for you all around the Cabinet table.

I also want to acknowledge Project Auckland Editor Fran O’Sullivan, Deputy Mayor Desley Simpson, and my former parliamentary colleague and boss Simon Bridges.

While I am a boy from Lower Hutt, I want to reassure you that I know and love this city, having lived here for two years, having many friends who live here, and am at the moment almost a weekly visitor.

Auckland is critical to New Zealand’s future. We are not going to be successful in growing our economy if we don’t think carefully about how we enable Auckland, as our largest and most important city, to grow and thrive.

That’s why government is investing heavily into transport in Auckland, through new Roads of National Significance, new busways, and commuter rail.

Without question, the largest of these planned investments is a second harbour crossing.

In fact, it will be one of the most expensive infrastructure investments in New Zealand history.

Our existing bridge is old, and even with the clip-on lanes, it’s expected to struggle with forecast increases in demand.

Despite the daunting cost, and the other challenges that come with the project, advancing an additional harbour crossing is a priority for this Government.

Right now, there is a barge in the harbour undertaking geotechnical, environmental, and utilities investigations of the Harbour floor – the first-time studies of this kind have been done.

NTZA are about to kick off early market soundings on this project, largely to help us make the decision every Aucklander is waiting for: bridge or tunnel. We expect to make that decision mid-2026.

Being realistic, this project won’t be built for a while yet – but Auckland doesn’t need to wait that long to experience a transformational transport project.

Everyone in this room knows the potential City Rail Link has to enable the growth Auckland needs.

Once open next year, CRL will double Auckland’s rail capacity and reduce congestion across the city, enabling Aucklanders to get to where they want to go faster.

It is critical for the city’s future that we take advantage of CRL and ensure that the maximum benefits are felt by Aucklanders.

We must focus high density, mixed-use developments around CRL stations – with as many jobs, houses, services and amenities within walking distance as possible.

This approach is known as transit-oriented development, and has been adopted by the world’s best and most liveable cities – think Stockholm, Copenhagen, Hong Kong, Tokyo, and Singapore.

Cities that embrace transit orientated development consistently outperform those that don’t across multiple metrics: they experience increases in productivity, lower unemployment, higher population growth, increased availability of homes, and more stable rents.

And with CRL, we have a once in a generation chance to embrace this in Auckland.

Consent decline

This is why I was so frustrated last week to see a resource consent application to build a $100m office building on K Road – within walking distance of the new CRL station – was denied by commissioners.

Frankly, this decision made me feel physically ill.

How can it possibly be that an 11-story building, which includes retail spaces and food and beverage stores, alongside office and commercial spaces for more than 400 people, is turned down in the centre of New Zealand’s biggest city?

The site it is currently planned to be on is a gravel pit. You heard that correctly. Our current planning laws are so fundamentally broken that a gravel pit in the CBD of Auckland is unable to be developed into a new office building.

The commissioners’ report said “The principal concern for the board is the scale of the development.”

Which might be more understandable if that was said about a development in a small regional town, but is astounding when there is a 20 story building within 100 metres.

Putting it simply, and excuse the RMA language, the commissioners when declining this application concluded that the adverse effects related to built form and appearance, streetscape, and historic heritage had not been sufficiently avoided such that the effects on the environment were considered ‘more than minor’.

This is precisely why we are scrapping the RMA, and replacing it with a radically more enabling system predicated on property rights. As you will have hopefully seen, I announced the architecture for our new system earlier this week.

A number of the changes we are progressing would have likely led to this K-Road development being approved rather than declined.

Our planned standardised zoning approach will help us move away from considering matters such as built form and appearance, or streetscape.

It will be clear what you can build and where, with fewer restrictions encouraging increased creativity in our built form – likely improving the look of our cities.

What I want to see in our new planning system is that development like this, due to its proximity to rapid transit and the central city, would be able to proceed without the need to gain approval at all – instead proceeding as a permitted activity through a standardised zone.

The other, more technical change we are proposing to make is the removal of what is known as non-complying activity status. The RMA states that a consent can only be granted for a non-complying activity if the adverse effects of the activity are minor, or the activity will not be contrary to objectives and policies of a plan.

In layman’s terms, this creates a barrier to some of these larger projects, with a much higher bar for approval, which sometimes is insurmountable.

This K-Road development was one of these non-complying activities. Remember that McDonalds in Wanaka that was declined a few weeks ago? Also a non-complying activity. That Southland windfarm that was declined last week? You guessed it: non-complying activity.

8-10% of all resource consent applications every year are for non-complying activities – and therefore face this sometimes impossibly high-bar.

By removing non-complying activities in our new system, alongside narrowing the effects considered in the planning system, we will making it substantially easier for these big projects to get approval.

PC 78

Moving on from K-Road – another issue that has been causing significant uncertainty for Auckland Council, as well as Aucklanders, has been the ongoing saga with it’s current plan change process, known as PC 78.

Auckland Council has been progressing PC 78 since mid-2022. This was the vehicle that was intended to implement the National Policy Statement on Urban Development – more commonly known as the NPS-UD, and the Medium Density Residential Standards – more commonly known as the MDRS. Apologies for the acronym soup.

The idea was that the MDRS, which enabled more density in the suburbs, and the NPS-UD, which enabled more density around CBDs and rapid transit, were both meant to be adopted by councils quickly – and the last Government gave them new planning tools to achieve this.

This, however, did not quite pan out. Fast forward to today, years after these were introduced, Auckland Council are still going through their plan change process to implement them.

In fairness to them, there have been significant challenges along the way. Cyclone Gabrielle and flooding events, and the change in Government has now made the progress of PC 78 tricky, to say the least.

I think Mayor Brown put it best when he called the current situation “a bit like RMA gymnastics”.

Following the floods, Auckland Council has seen the need to address a number of new natural hazard areas prone to flooding.

Unfortunately, and frankly, annoyingly, the plan change process they had to use for PC 78, does not allow downzoning. It wasn’t envisaged at the time that councils would need to do anything other than upzoning using this process, and now they are stuck.

The other issue is the light rail corridor. Auckland Council left this blank in PC 78, anticipating new station location announcements, which obviously did not come, as we won the election, and scrapped this wasteful project as promised.

We also have also communicated changes to the rules around the MDRS, as we campaigned on, therefore changing Auckland Council’s approach to PC 78 yet again.

These things have left Auckland Council in a very confusing situation not entirely of their own making – although I do want to say, that if they had they delivered this plan change on the timeframes originally required of them, a number of these issues would be much easier to manage now.

With us about to introduce a new RMA system, and this having dragged on for frankly far too long already, we want Auckland Council to bank some quick-wins for density and development now. Aucklanders have waited for too long.

That’s why I can confirm today that I have changed my legal “direction”, made under the RMA, on Auckland Council on the timing and sequencing of decisions on PC 78.

This change will bring forward decisions on the city centre, by ten months from the previously required date of March 2026 to May 2025.

This will almost immediately support the enablement of thousands of dwellings and significant development potential in the heart of Auckland – where basically everyone accepts this kind of growth is critical.

We are able to do this because the city centre parts of PC 78 are discrete from the rest of the changes and have been through submissions and hearings already.

Locking in this part of the plan change as soon as possible is a massive win for our biggest city, and a massive win for economic growth.

For the time being, the remainder of PC 78 will still need to be completed by March 2026 as per the law.

I note that Auckland Council, in their submission on the Resource Management (Consenting and Other System Changes) Amendment Bill, which is currently before the Environment Select Committee, have asked for changes to enable the immediate withdrawal of the remaining parts of PC 78.

As this Bill is currently before Select Committee, and due to come back to Parliament later in the year, I am unable to provide comment on whether these suggestions will be incorporated.

However, I can confirm this is something that is being considered as part of the Committee’s process, and I’ll have more to say on this in due course.

I am grateful to the work of Mayor Brown and his council in advancing housing and urban outcomes for our great city of Auckland.

In my experience, Mayor Brown has been steadfast in his support for sensible density in the city centre, in Auckland’s metro-centres, and near key transport connections. I want to thank him for his leadership, and for bringing sense back into the density debate in Auckland.

This situation has without a doubt been the most complex I have had to deal with as a Minister. If anything, it underscores the urgent need for our replacement planning system.

Aucklanders shouldn’t need a PhD in planning or a team of lawyers to understand the progress of a major zoning change going on in their backyards. Our new system will have plans that are much more streamlined and simple, clearly communicating what Kiwis can do on their own property, without the years and years of backwards and forwards.

Conclusion

In conclusion, I want to repeat what I have said in my column in the Project Auckland report we are all here to launch today:

Auckland has a bright future. Whenever I visit Auckland, I get a palpable sense of opportunity knocking. Auckland isn’t waiting, it’s getting on with the mission of growth. It is bursting at the seams with opportunities — now, it is the responsibility of all of us to help make it happen.

Thank you – I will now take your questions.

Source: NZ Music Month takes to the streets

Good morning, everyone.

I’m Todd McCay, Minster of Agriculture, Forestry, Trade, the first minister for Investment – or Foreign Direct Investment, as well as associate minister for Foreign Affairs — responsible with the Deputy PM for: Latin America, Gulf States, Northen Asia, and Africa.

New Zealand is an ambitious, innovative country. We’re globally connected, rich with opportunity, and open for business. If you’re looking for a place to invest, to build, or to grow—New Zealand is the place to be.

Our location in the Asia-Pacific, a stable political environment, a highly skilled workforce, and significant network of trade and investment agreements makes us an obvious choice for global businesses.

As Trade and Investment Minister, I often talk to investors who see the immense potential New Zealand offers. They tell me they want to do more here, and my message to them, and to you, is clear: we will back you.

If you want to grow, to expand, or to innovate in New Zealand, we will help make it happen.

The Government, and New Zealanders, know that Foreign Direct Investment is crucial to grow the economy. It fuels innovation, creates jobs, and ensures we can compete on the world stage. That’s why we’re making it easier than ever for investors like you to seize the opportunities that we have to offer.

We have important trade architecture through trade and investment agreements with most parts of the world, 20 of them in fact, from the UK and EU to the CPTPP including Japan, countries from North America, South America, South East Asia, Australia, China, Singapore and of course two newly concluded last year in record time, the UAE and GCC including Saudi Arabia.

We have a network of investment treaties and agreements with more than 40 countries – 84% of New Zealand’s FDI is covered by these agreements worth $133 billion. And we have more than 40 double tax agreements and we respect tax rules and law.

Today, I am pleased to announce that we will roll out the welcome mat, by establishing a new agency – Invest New Zealand — a dedicated, standalone group focused solely on attracting foreign investment, whose job it is to make it easier for you. I also want to introduce you to our key growth sectors, where we see huge potential, and tell you about the changes we’re making to ensure New Zealand is a top-tier destination for your investment.

Invest NZ has a bold new vision

We’re taking investment attraction to the next level.

To scale up our efforts, we will stand up Invest New Zealandby 1 July this year.

The world has responded positively to our announcement that we are open to investment — and we don’t want them to have to wait for our service.

Invest NZ will be a one-stop-shop, a problem solver, cutting through bureaucracy and proactively ensuring that investment propositions get through the system quickly. Its job will be to work with you get the right decisions from central and local government smoothly, get your consent or permission effortlessly. We want to derisk your decision to invest in our country.

Through Invest NZ, we will:

• Target high-impact investments in key sectors like technology, agritech, renewable energy, fintech, finances, manufacturing, advanced manufacturing and of course the production and processing of high-quality, safe food.
• Remove unnecessary barriers so investing here is easy, efficient, and predictable.
• Proactively engage with global investors and multinationals, showcasing the unique advantages of doing business in New Zealand.
• Support high-growth Kiwi businesses to become investment-ready, so they can scale up and expand internationally.

While Invest NZ won’t lead on infrastructure investment – that remains with National Infrastructure Funding and Financing Limited – it will connect global investors with the right agencies to get deals done. We want to make it as easy as possible for you to do business here.

Invest NZ is a tool available to investors get deals through the system quickly and efficiently, and to give you the certainty that the Government stands with you.

By leveraging our strengths: our talent, innovative excellence, and commitment to high-quality production – Invest NZ will unlock tens of billions of dollars in global investment and position New Zealand as one of the most attractive places to invest in the Asia-Pacific.

We have set an ambition target to double exports by value within ten years, Invest NZ will ensure New Zealand attracts the capital needed to help achieve this. We will also compare FDI stock as a percentage of GDP against other nations to better measure our success in attracting investment.

If you want to do more in New Zealand, we back you and Invest NZ will help make it happen.

Investing in High-Growth Sectors

There’s no shortage of world-class investment opportunities in New Zealand – you heard about a few of them yesterday from the Prime Minister and my colleagues. Across multiple industries, businesses are scaling, innovating, and looking for global partners to help them grow. We believe some of the biggest untapped opportunities lie in the following sectors:

Fintech & Finance

New Zealand’s fintech sector is booming.

• $2.6 billion in revenue in 2023, with 24% compound annual growth since 2018.
• Now New Zealand’s largest tech sector, establishing a critical mass of larger export firms like Xero.
• Fintech firms with $5m+ in revenue have tripled in a decade.
• The sector employs 4,200 people in New Zealand, with another 4,650 offshore.
• The Government is introducing open banking legislation to drive competition and innovation in financial services, creating new opportunities for investment. There are opportunities for more banks in New Zealand.

Renewable Energy

New Zealand is leading the global shift to net-zero carbon.

• 88% of our electricity is generated from renewables—but just 30% of our industry and transport runs on clean energy, meaning massive untapped potential.
• Strong government backing and natural resources make this a prime sector for investment.
• Opportunities exist in green hydrogen, battery storage, renewable energy exports, data storageand AI processing.

Advanced Transportation

New Zealand is a testbed for cutting-edge transport technology.

• Ranked third in the world for rocket launches.
• A forward-thinking regulatory environment allows innovation to scale fast.
• Investors can plug into a fast-growing ecosystem spanning aerospace, EVs, and autonomous transport.

Aquaculture

Aquaculture is New Zealand’s fastest-growing food production sector.

• The global market is expanding at 5.4% compound annual growth rate.
• New Zealand has one of the largest exclusive economic zones in the world (4.1 million sq km).
• The industry is targeting $3 billion in annual value by 2035.

Cleantech

New Zealand is a global leader in sustainable innovation.

• The cleantech market is projected to hit $1 trillion by 2030.
• We have a highly skilled tech workforce and strong R&D capability.
• A growing pipeline of scalable cleantech ventures needs capital to accelerate growth.

Minerals & Resources

New Zealand’s mineral sector is primed for growth.

• The sector aims to double exports to $3 billion and grow jobs from 5,290 to 7,000+ by 2035.
• Expansion of gold, coking coal, mineral sands, critical minerals and rare earth minerals will drive this growth.
• New Fast Track Approvals legislation is clearing the path for investment.

We Back You

There are world-leading businesses across all these sectors ready for investment. Many of them need not just capital, but global expertise, networks, and partners who can help them scale.

So, my message to you is clear: If you’re ready to invest, we’re ready to help. We can drive growth together and turn opportunity into profit.

I encourage you to get in touch with the team at Invest New Zealand if you’re interested in learning more about opportunities in the sectors included in the following showcase or in any other sectors.

Conclusion

It is now a privilege to hand over to my colleagues who will take you through the specific sector opportunities I’ve highlighted:

• Minister Jones: recourses and aquiculture
• Minister Collins: Advanced Transportation
• Minister Watts: renewable and clean energy

It has been a pleasure speaking with you. I look forward to seeing many of you take the next step and grow sectors in New Zealand.

As New Zealand’s newly appointed, and first Minister responsible for Foreign Direct Investment, I want to leave you all with one clear message – we are open for business, and we will be saying yes to investment.

Thank you.

Source: NZ Music Month takes to the streets

Tēna koutou katoa. Greetings everyone.

It’s a pleasure to be here today, to feel your energy and the sense of possibility and opportunity in this room. Whether you’ve travelled from the other side of the world, or took on Auckland traffic to be here, your presence matters.

I’m here today as a proud New Zealander, one of a team of Government Ministers determined to make much more of the enormous potential of this incredible country. To:

• improve the quality of peoples’ lives
• deliver better public services and
• create great jobs for our kids;

That last point is especially important for me, on a personal level: I’m a mother of four children aged 9, 12, 13 and 15. In this world of abundant choices for them, in terms of where they take their skills, where they take their lives, I want them – and all young Kiwis – to see this as a country of aspiration, and a place they should choose to make their home. I entered politics with a very strong conviction that strong leadership and good policy are needed to make this a place that the world’s talent will continue to make their home.

I serve our Prime Minister as both our Finance Minister and our Minister for Economic Growth.

As Finance Minister, I take responsibility for managing our Government’s books. So yes, I am the bean-counter, and I am always on a perpetual mission to drive more value from the spending we do and the investments we make. I am the Ministerial colleague who takes pride in scrutinising the dollars, in reading through the business cases, and having the courage to say ‘no’ when proposals don’t stack up, and in saying ‘yes’ to innovations and partnerships that enhance the financial discipline and reliable delivery of vital public infrastructure.

I also have the privilege of being our Minister for Economic Growth, helping lead our Government’s growth agenda. Growth is central to our mission and purpose: not only is it our most powerful tool for strengthening our public finances and flattering those books of mine, it’s also the means by which we will create better choices, higher living standards and more financial security for our people.

Why should you invest in New Zealand?

New Zealand is incredibly well positioned for growth. We are an undervalued stock. We have a stable democracy, with strong institutions and enduring respect for the rule of law, that has survived over successive changes of government. We have safe borders, extraordinary natural resources, a temperate climate, strong trading relationships, an open, innovative culture – and you’ll see that open culture on display these next two days, and expect to have some candid and frank conversations – that’s how we roll. We have talented people.

Let me paint that picture for you.

Our stable democracy

We ranked first on the World Bank’s ease of doing business index the last time the bank issued the index in 2019.

We rank second on the Economist Group’s Democracy Index and according to Transparency International we are the fourth least corrupt country in the world. This is a good, reliable place to do business.

We have safe borders, good international relations and extensive trading networks.

Of course, it is somewhat simpler to have safe borders when you are surrounded by ocean, as we are. Our nearest big neighbour is 1500km away. We have worked hard, over many decades, to establish diplomatic relations with a large number of countries in all regions of the world.

In 2024 we exported more than $101 billion worth of goods and services.

Our largest export markets are China, the US and Australia, but we export to 230 nations in total.

Across successive governments, we have weaved a constellation of close trading and economic relationships that give our exporters access to a broad range of markets on competitive terms.

Our main good exports are dairy products, tourism, meat, wool and forestry, but our exports extend to world-beating digital services, advanced manufacturing and exciting creative industries.

We have strong institutional settings

It should give you confidence that while elections may change things, many things will remain.

Over successive decades and Governments, we have worked hard to put in place best-practice institutional frameworks: an independent central bank with a remit for low and stable inflation – the first inflation-targeting regime in the world – and a floating exchange rate.

Our legal system, based on the British model, upholds the rule of law with an independent judiciary.

Our government accounts are prepared according to high international standards and are released in a timely fashion.

Stability is our middle name.

We have sound government accounts

Our Public Finance Act requires the government of the day to be transparent about both its short- and long-term fiscal objectives and to maintain prudent debt levels and report against these measures.

We have relatively low levels of government debt compared to other countries, with the IMF’s most recent Fiscal Monitor ranking us having relatively the 26^th lowest level of public debt when compared to the 33 advanced countries they assess.

The Government is working hard to put net core Crown debt on a downward trajectory, balancing the need to ensure are resilient to and future economic shocks that may come our way while making room for the prudent investments needed to drive future productivity.

Labour market flexibility

We have a flexible labour market.

OECD comparisons rank us highly in terms of flexibility for hiring temporary workers, and for settings that allow high labour flows between jobs and industries.

Between 2000 and 2017 about one fifth of New Zealand workers switched jobs each year and about half of those job switches involved a change of industry.

This flexibility helps labour productivity by making it easier for workers to move from less productive to more productive firms, or to jobs that better match their skills.

We are well poised to adapt our workforce to the new industries and new challenges that are right upon us as a world, and that will continue to arise in the coming decades.

Similarly, our rates of long-term unemployment are low, and while we did not escape the post-Covid downturn in economic activity experienced throughout the world, our unemployment levels remain below historic averages.

We have flexible and responsive regulatory systems. We are small, and we are nimble. Our small size and our can-do attitude has translated to has translated to an ability to respond quickly to emerging opportunities.

A key example is that of space company Rocket Lab, which the Prime Minister referred to. It announced in late 2014, through its leader Peter Beck, that it wanted to launch rockets from a remote peninsula on the East Coast of the North Island.

Less than a year later, seized by that possibility and opportunity, the Government agreed to a new regulatory regime – a world-leading regulatory regime – to enable those rockets to launch.

That regime came into law in 2017 with the first launch by Rocket Lab taking place that same year.

We have done it before, and we are prepared to do it for emerging industries again.

Unlike some countries in the world, beset by large size and complexity, we have a parliament that allows these things to happen quickly.

We also have some of the best, most efficient and most sustainable farmers in the world, who take pride in making the most of our abundant natural resources.

We have a long history of not subsidising our farmers but instead having them face competitively into world markets.

Fonterra is the sixth largest global dairy producer and our sheep and beef farmers are internationally renowned. We feed tens of millions of people around the world, delivering products that meet exacting safety standards.

New Zealand’s exclusive economic zone is over 14 million square kilometres, the ninth largest in the world, and aquaculture is New Zealand’s fastest-growing food production sector.

We have abundant renewable energy. Eighty-eight per cent of our electricity comes from hydro, geothermal, wind, solar and other sources of renewable energy. We have no lack of land or desire or capacity for far far more renewable energy.

We are blessed with minerals and resources, and have huge capacity to make more of these. Legislative changes are paving the way for increased investment in the mining of gold, coking coal, mineral sands and critical minerals.

We have an entrepreneurial and innovative DNA

We pride ourselves – as the Prime Minister said – on what we call our number eight wire mentality – our ability to innovate.

New Zealand is, by and large, a country of small businesses, led by innovative people with a can-do attitude, some of whom make it very big.

Examples include cloud-based accounting software company Xero, Wētā Digital famous for its groundbreaking visual effects and Fisher&Paykel Healthcare, globally recognised for its work providing innovative healthcare solutions for more than 50 years.

We have a proud and accomplished indigenous population, with our Māori economy becoming an increasingly significant player in the New Zealand economy and contributing hugely to New Zealand’s unique national identity.

Over the five years to 2023 the Māori asset base increased from $69 billion to $126 billion. That was a faster rate of asset growth than for the economy as a whole – testament to the success iwi and Māori entities are having in making smart and long-term investment choices, underpinned by strong commercial discipline.

Over the same period the Māori economic contribution to gross domestic product increased from $17 billion to $32 billion. Mark my words, that growth is set to continue.

Changing attitudes

And we’ve been trading successfully internationally since the first contact between Europeans and Māori in the latter part of the 18th century.

We have some strong traditions. But I also think that New Zealand is at a moment of change. Some of that change isn’t things you can see, but it is a change in attitude.

Where once New Zealanders primarily were concerned about preserving what we already had, and our way of life as it has been, increasingly, New Zealanders have growing recognition of the need to embrace change if we want to provide opportunities for our children and fund high quality health, education and other public services.

That desire to change, that sense of ambition and possibility, is reflected in the Government’s reform agenda.

Let me give you some examples.

1.Overseas investment

We recognize that the world doesn’t owe us a living and that every country in the world must compete for its share of the world’s wealth.

NZ’s foreign direct investment levels currently sits at around 40% of GDP compared to the OECD average of 53% as at 2023. There is untapped potential for more investment in this economy.

We are reforming our overseas investment settings to ensure more of the world’s capital can flow here and is encouraged to flow here. We are determined not to allow red tape or uncertain settings to disrupt investment and growth.

The impulse driving this reform is strong.

Over the past 10 years, New Zealand’s labour productivity growth has only averaged about 0.3 per cent a year.

Low capital intensity has been identified as one of the major causes of that low productivity.

In order to increase our productivity, we need more capital investment. And David Seymour has been changing the rules to ensure we can.

Therefore, we’re changing the rules to:

• Better reflect the benefits investment can provide to New Zealand’s economy
• make consenting decisions in just 15 days for all investments aside from residential land, farmland and fishing quota
• strengthen the Government’s ability to intervene on the rare occasions that a transaction is not in the national interest; and

Our goal is to increase New Zealand’s attractiveness as a destination for your investment.

2. Fast-track consenting

We’re acutely aware of the challenges and frustrations for the need for effective, timely and affordable approval processes for new projects.

We’re reforming our resource consenting rules, and fast-tracking the consenting process for projects of national and regional importance.

They include:

• renewable energy projects
• aquaculture businesses
  • mining projects; and
  • housing developments

3. Gearing up for a more stable and predictable infrastructure pipeline with more Public Private Partnerships

Our democracy is robust, and the contest of ideas in our Parliament is very lively, but we have found common ground, across parties, on the need for a more bipartisan approach to infrastructure planning and delivery. The presence of three opposition Parliamentarians here today is testament to that shared aspiration, and that sense of what is good for New Zealand over the long term.

The simply reality is that overcoming New Zealand’s infrastructure deficit demands an approach that can look through elections and any change of Government.

We do intend to be here for many, many years to come – but in the event that there is a change, we recognise the benefits that come from sequencing a clear pipeline of upcoming investments and have made institutional reforms to support this. Across all areas of public infrastructure we are working to logically identify, prioritise, and sequence the investments needed over the coming decade and beyond. You will hear a lot more detail about these plans from our Ministers over the course of this summit.

We are excited, also, by the opportunity for adoption of modern funding, financing and partnership approaches for the delivery of these public infrastructure projects.

The New Zealand Government has done eight public private partnerships so far. They include schools, roads and corrections facilities. We have learned from these, and we want to do more.

Of course, we’ll only do PPPs when they are in New Zealand’s best interests.

When negotiating PPPs our focus is on the enhanced delivery of public services not just cost.

We are interested in incentivising and allowing innovation, locating risk with those best-placed to address it, focusing decision-makers on whole-of-life outcomes and unlocking new funding sources.

We recognise that the people in this room bring not only capital but also skill, and experience that will allow us to deliver better infrastructure faster.

The outlook

Our Government has a clear mandate to drive growth-enhancing reforms across a broad range of public policy.

As I stand here today, I can be clear with you that there is a Government that wants to make this an even better place to do business. Whether it’s:

• Changing work visa to make it easier for employers to get the workers they need and to better facilitate foreign direct investment
• Reviewing competition rules with a view to increasing competition, we see huge possibility for new entrants in our grocery, and banking sectors, among others and we’re ensuring that our regulatory frameworks encourage innovation and disruption.
• Launching a minerals strategy
• We have also been working on a number of reforms across government to increase our education standards to ensure access to a skilled workforce,
• We have been reorienting the science and innovation system to focus more on commercialisation, and to make the most of new gene technologies.

Across all of these reforms, whether it is regional growth initiatives, whether it is macroeconomic reform, whether it is microeconomic reform, our focus is on making the most of what we have.

Conclusion

Like a lot of countries, New Zealand has been through a challenging few years.

But what I would put to you as I stand here today is that if I could choose to be any country in this particular moment in time, this moment of some uncertainty, of rapid change and of more concerns about security than I have seen in my generation, in a world in which people are worried about security – I would choose New Zealand.

In a world in which people are worried about food supply and the effect of extreme climatic events, I would choose New Zealand.

We have safe, secure borders, a temperate climate. We have abundant resources, robust institutions, strong cultural foundations and the best people. Our best years are ahead of us, and we are grateful to you for coming with us on this journey.

There are huge opportunities for you to generate value. There are huge opportunities for us to grow together. Let’s make New Zealand an even better place.

Thank you.

Source: NZ Music Month takes to the streets

Good morning.

It’s a pleasure to speak with you about our country’s incredible potential. My comments focus on the Government’s work making it easier to do business by improving our regulatory settings.

You know New Zealand is small. From your flight here you know it’s distant. In fact, no Governments can control the size of their population or their geography, but they can control the quality of their public policy.

As Minister for Regulation and Associate Minister of Finance, my job is to ensure New Zealand has the regulatory settings to attract more investment and achieve higher productivity and living standards.

When I talk about regulatory settings, I mean the rules that government puts in place that restrict the use and exchange of private property. That is distinct from government’s other roles, which include spending to produce goods and services, and ownership of capital assets.

It’s this first area where I believe governments can make the most difference to encouraging investment, both domestically and from abroad. The foundation of a good regulatory system is secure property rights on a sound platform of the rule of law.

A recent edition of the Human Freedom Index rated New Zealand ninth out of 165 countries for its application of the rule of law. We were the highest ranked country outside of Western Europe, and ahead of Australia, the United States, Canada, and Great Britain on this score.

All Kiwis love beating Australia, at anything, such as when we got more medals per capita at last year’s Olympics in Paris. I may be unusual but I take particular pride in New Zealand being a freer society with sounder institutions than our neighbour, and indeed having some of the best institutions in the world.

We also have other attractions. A long history of stable democracy, being one of only seven countries to be democratic for the entirety of the twentieth century. We have a modern, open market economy. We have a highly skilled workforce, a stable political environment, and a government committed to making the necessary reforms to ensure long-term success.

We’re not kidding ourselves that that’s enough, however. As I said, sound property rights and a commitment to the rule of law, are only a foundation.

They get us to the starting line, but to win the race we must be better regulators, provide more certainty, and less red tape, making it easier to get a permit to use and develop your property so long as you are not doing harm to others or the natural environment.

That’s exactly the challenge our nation is now stepping up to meet, and it’s the commitment this Government is determined to deliver upon.

Overseas Investment Act changes

One critical area of regulation that I am responsible for is the consenting of overseas investments. Investment from overseas is fundamentally a win-win scenario. As Milton Friedman famously observed, the beauty of the free market lies in the fact that transactions only occur when both parties see mutual benefit. We agree. Investments into our country are, by definition, win-win.

We’re a growing nation and our businesses need capital to maintain our position as a first-world island paradise in the South Pacific. To do that, we are overhauling our regulation of overseas investment.

We’re creating a more efficient, growth-focused approach to attracting overseas investment with changes that will make it easier, quicker, and more transparent for foreign investors to invest in New Zealand businesses. I’ve seen first-hand the difference this makes to Kiwi businesses and Kiwi workers.

Not long ago, I visited two businesses in the same industry, on the same afternoon. Both companies had talented teams and great ideas. One, however, had access to overseas investment.

It meant that business had better machinery, tools that allowed their workers to be more efficient, more productive. It also meant they had access to valuable knowledge, expertise, and global networks that helped them market their product more effectively. It gave them the resources and know-how to scale, to innovate, and to compete at a higher level.

When workers have access to better tools and technologies, they become more productive. And when productivity increases, wages rise. Our country knows this deep down, and we are embracing the world as we seek to strengthen our connections through trade and investment.

Currently, our overseas investment regime processes about $19 billion in foreign investment each year. While this represents a fraction of the total foreign investment into our country, it captures major investments of significant value.

I want this number to grow, and I think there is desire out there to seize opportunities here.

But I’m aware that our existing screening regime has created barriers for potential investors. Our screening regime approves 98 per cent of applications. However, while many investments have little or no risk, investors must submit onerous applications demonstrating the benefits to New Zealand. That has made applications costly to prepare and time consuming to assess.

When I was put in charge of policy in this area fifteen months ago, I knew we needed change.

I found that two elected Ministers had to sign every consent, no matter how minor. Is it really a good use of time for two elected officials to sign off someone buying a paddock so they can plant grapes, because their passport doesn’t say New Zealand? I think we all know the answer, and that’s why I have delegated the majority of the decision-making to the regulator.

A minor thing, in the scheme of things, but it has sped up consents by several weeks and shows our direction of travel. The regulator now has the power to speed up decision-making, balancing the need for careful risk management with the urgency of encouraging more investment into New Zealand.

That change was part of a new Ministerial Direction letter with a range of simplifying measures. I’m pleased to say it was half the length of the one my predecessor wrote.

Since these changes were implemented, over 90 per cent of the consent applications received and processed have been decided in less than half the seventy-day statutory timeframe. This is a huge win for efficiency but it’s the only the start of the improvements we’re making.

We have made every change possible within Parliament’s current law, the Overseas Investment Act, so now we’re changing the law itself.

We’re undertaking a full review of our Overseas Investment Act, with an aim to make our investment regime even more investor-friendly while ensuring we continue to protect New Zealand’s long-term interests. The new regime will operate with a presumption in favour of foreign investment, acknowledging the significant benefits it can bring to our economy. Our intention is to introduce the law to Parliament in May and pass it into law by the end of the year.

Most critically, the changes will revise the presumption in the Act that it is “a privilege for overseas persons to own or control sensitive New Zealand assets” for asset classes other than residential land, farming, or fishing quota.

Removing the need to justify a privilege will simplify the consenting process. The process will instead focus on whether the investment might do harm to others or the environment that is not managed by our domestic regulations. It will create a two-track consenting regime, dependent on whether such risks are apparent.

For investments that are not in residential land, farmland, or fishing quota, we’ll make decisions in just 15 days, unless the application is potentially contrary to New Zealand’s national interest.

Investments that are subject to a national interest test will continue with a similar process to now, however we are managing rapid consent turn around even in that scenario.

Altogether, we can point to a track record of tangible change in our overseas investment regime. That record allows us to make credible commitments to further improvements planned this year. The take-out is a Government that is committed to attracting overseas investment that matches its words with actions, and a country that is becoming more attractive as a destination for overseas investors.

Regulatory reform

As I mentioned earlier, consenting overseas investment is one regulatory system that we are committed to reforming. We are committed to improving our regulatory environment across the board, and this Government has a very busy program of making it easier to use and exchange private property in this country.

We are not alone in the world when it comes to concerns about red tape and regulation. I think we can make a strong case, however, that we are a standout in tackling the problem.

There has been a red tape renaissance around the world recently, with many governments committing to cutting red tape. I recently saw it described in The Economistas ‘the revolt against regulation’. Countries all over the world are waking up to the impact of decades of laws and regulations, created at one time to ‘solve’ a problem or scratch an electoral itch, over time stacking up like lasagne until no one knows why they were implemented in the first place and if they’re achieving anything other than compliance.

One important step we’ve taken to address the encroachment of red tape across the economy is setting up the Ministry for Regulation. The idea behind the organisation is simple – bureaucracies have their own interests, and a department whose job is to enforce a rule isn’t going to suggest abolishing that rule. Which is where the Ministry for Regulation comes in, they make sure that the Government’s number one consideration is the impact on the regulated party. The Ministry is a major part of this government’s deregulation agenda.

One year ago, the Ministry for Regulation was given the task of improving the quality of regulation in New Zealand. The Ministry can now point to a growing list of deregulation measures helping businesses, workers, and consumers.

As a central agency, the Ministry’s role is to improve regulatory quality across the board, including the experience that New Zealanders have of complying with regulation.

In November last year, we launched a new Red Tape Tipline. This is an online tool on the Ministry’s website where people can make submissions about red tape that affects them. The Ministry is now assisting people by unblocking a myriad of little irritations so they can get back to doing what they do best; producing jobs for their employees, returns for their investors, and goods and services for their customers.

The Ministry is already working hard on the introduction of a Regulatory Standards Bill.The Bill will codify principles of good regulatory practice for existing and future regulations, ensuring regulatory decisions are based on principles of good law-making and economic efficiency.

To make regulatorsaccountable to the New Zealanders they regulate, the Bill proposes a Regulatory Standards Board. The Board will assess complaints and challenges to regulations. Raising the political cost of making bad laws by allowing New Zealanders to hold regulators accountable will result in better law-making, higher productivity, and higher wages for Kiwis.

With the passage of the Regulatory Standards Bill, new and existing laws will be tested against legislated principles of responsible regulation. I won’t elaborate on each one, but these principles establish standards for:

• The rule of law
• Liberties
• Taking of property
• Taxes, fees and levies
• The role of the courts
• Good lawmaking, including problem definition, cost-benefit analysis, and identification of where costs and benefits fall.

Publicly testing regulatory activity against these principles makes it easier for voters to monitor what their politicians are up to. In turn it changes the political calculus from politicians being rewarded for ‘doing something’ to politicians and officials being rewarded for doing something in line with sound regulatory principles.

Ultimately, this Bill will help the Government achieve its goal of improving productivity – ensuring that the regulatory system is transparent, has a mechanism for recourse, and holds regulators accountable to the people.

The Ministry is also tasked with reviewing existing regulations and making recommendations for improvement.

A recently-concluded review into agricultural and horticultural products – widely welcomed by farmers, growers and our agriculture industry – made 16 recommendations for change, with Cabinet accepting all recommendations.

The review found that halving approval times for new products is estimated to generate benefits of $272 million over twenty years for New Zealand farmers and growers.

Thanks to the work of the Ministry, farmers and growers will have faster access to new products which will lift primary sector productivity and growth.

That is one example. Another is Early Childhood Education. In New Zealand it is largely privately-run and amounts to a $6 billion dollar industry. Operators have felt neglected and infuriated by a regulatory system involving multiple agencies and a lack of clarity.

The Ministry for Regulation has listened to the operators, considered their concerns, and brought together the regulators to map out a new approach that addresses genuine public concerns, while making it easier for the sector to operate. As it gets up to speed, the Ministry will be reviewing a sector a quarter for the foreseeable future.

Deregulation across Government

As the Minister for Regulation, I’m proud to be leading the Government’s approach to regulatory policy, however it would be wrong to conclude that’s all we’re doing, or that our regulatory policy is entirely dependent on the Ministry’s efforts. Regulatory reform is a theme across the entire Government.

This Government is replacing its resource management laws. The new law will be premised on the fundamental principle of private property rights. The starting presumption is that you can use and develop your property, and objections should be grounded in impairment of the objectors’ property rights. The result will be a law that makes it easier to use and develop real property.

My colleague, Brooke van Velden, as Minister for Workplace Relations and Safety, has repealed the previous Government’s attempt at industry-wide collective bargaining and has reintroduced 90-day employment trials. She’s now set her sights on simplifying our health and safety and employment laws too, providing certainty for employers and employees.

Another of my colleagues, Nicole McKee, is determined to fix our anti-money laundering laws and provide regulatory relief for individuals and businesses who use that law. This is alongside our Minister of Commerce Scott Simpson’s programme of financial sector regulatory reform.

Our team of agriculture ministers is removing some of the more illogical restrictions on our agricultural sector so farmers can get on with farming.

Our Minister for Energy, Simon Watts, is reversing the previous Government’s ban on offshore oil and gas exploration.

My Colleague Chris Penk, the Minister for Building and Housing, is opening the building products market to foreign competition in a drive to get prices down.

My colleague Chris Bishop is making it easier to get on and build the infrastructure our country desperately needs, as you heard from him earlier.

There is a significant regulatory reform programme happening across nearly every sector of our Government. The result will be a greater ease of doing business, more investment from inside and outside our shores, and better productivity.

Conclusion

We all know that capital is highly mobile, and investors are looking for safe and stable countries to do business.

I am excited by the opportunities presented through the major reforms the Government is making.

We’re creating the conditions that make it even easier for businesses like yours to invest, innovate and grow in New Zealand. We do that because we know it’s a win-win – investment leads to productivity, which leads to higher wages and happier lives.

A troubled world needs a frontier. That’s a space for pioneers. My ancestors started coming to these islands 800 years ago, and migrants continue to join my wider family this century. We are a nation of immigrants.

What we all share is the pioneering spirit that drove us here. We have an ambition to make tomorrow better than today through our own efforts. I believe that culture is more valuable than anything physical, because the greatest natural resource is human creativity.

It also makes us wonderful partners for like-minded people around the world. People who seek to trade value for value and get stronger together. I hope that after this conference, you will see New Zealand as a special place of opportunity, just as my family has for 800 years.

Thank you.