NZ Engine

Source: The Economic Development, Science and Innovation Committee is calling for public submissions on the Consumer Guarantees (Right to Repair) Amendment Bill.
MIL OSI

Source: The Foreign Affairs, Defence and Trade Committee is calling for submissions on its international treaty examination of the New Zealand – United Arab Emirates Comprehensive Economic Partnership Agreement, and Agreement between the Government of New Zealand and the Government of the United Arab Emirates on the Promotion and Protection of Investments.
MIL OSI

Source: The Foreign Affairs, Defence and Trade Committee is calling for submissions on the Customs (Levies and Other Matters) Amendment Bill.
MIL OSI

Source: The Finance and Expenditure is progressing its Inquiry into banking competition, in collaboration with members of the Primary Production Committee.
MIL OSI

Source: The Justice Committee has decided a list of submitters who will be invited to make oral submissions on the Principles of the Treaty of Waitangi Bill.
MIL OSI

Source: The Justice Committee has decided how submitters will be selected for the remaining 70 hours of hearings on the Principles of the Treaty of Waitangi Bill. The committee has also issued an indicative hearings schedule.
MIL OSI

Source: NZ Music Month takes to the streets

Most weeks, following Cabinet, the Prime Minister holds a press conference for members of the Parliamentary Press Gallery.

This page contains the transcripts from those press conferences, which are supplied by Hansard to the Office of the Prime Minister. It is important to note that the transcripts have not been edited nor verified for accuracy.

Source: NZ Music Month takes to the streets

Tēnā koutou katoa. Nga mihi ki nga manawhenua o tenie rohe me nga waka katoa ki tae mai nei.

Good afternoon everyone.

Thank you for the opportunity to be here today.

I want to acknowledge the work the Nelson Tasman Chamber of Commerce does.

And I want to acknowledge the Nelson Tasman business community. You are at the heart of your communities, creating jobs, generating income for locals and producing a diverse range of goods and services.

I always enjoy visiting Nelson and have enjoyed many visits here since becoming an MP. Your local Mayor and Former MP Nick Smith has made sure of that!

But my first iconic Nelson-Tasman experience was not in fact a Nick Smith related one.

I have especially fond memories of kayaking and hiking through the Abel Tasman National Park around 20 years ago with my then boyfriend – now husband – and being dazzled by its majesty, complete with frolicking baby seals, enthusiastic trampers playing 500 in the huts. A Thai green curry and cold beer providing a grand finale at what I think must have been the Park Café Mārahau.

My personally memorable experience is not unique.

The Nelson Tasman region is a really special part of New Zealand. That’s demonstrated by the number of people who choose to visit here – from around the country and the world, and the number of migrants who choose to move here and make this place home.

Like many other areas of the country, the communities of this region are facing both exciting economic opportunities and a range of economic challenges.

On the one hand there is so much to feel optimistic about, from your thriving and diverse food and beverage sector, the growing and potential-filled blue economy, your leadership in forestry and wood product manufacturing, and your growing visitor economy, all of which sustain jobs and incomes today and have the ability to deliver even more in future.

These growing industries are good news for the future of people here, and, beyond that, will help New Zealand earn the additional revenue we need to fund great health care, education services and physical infrastructure. Like the Hope Bypass, upgrades to Nelson Hospital and repairs to local schools.

I’ve had the pleasure today of visiting some of the people leading in these sectors: I spent time at the Cawthron Aquaculture Park and felt excited by their vision for driving forward the Government’s goal of quadrupling the size of the aquaculture sector over the next decade.

I visited Trinder Engineering and was wowed by their commitment to research, innovation and a positive workplace culture.

And I visited Pic’s Peanut Butter: whose story began with a product made in a concrete mixer winning over die-hard fans at the Nelson Farmer’s Market and has now expanded to produce 25,000 jars a day for peanut butter lovers the world over.

There are good news stories like this across New Zealand, and I think we should all do more to celebrate our great Kiwi success stories.

These successes came about because of clever, brave people who decided to take a risk, to take a loan to invest in big ideas, to work hard to make things happen, to hire good people and offer them meaningful careers, to pursue a vision and keep going in the face of adversity.

In doing so, these enterprises, and the hundreds like them across Nelson and New Zealand, have supported thousands of people into good jobs, providing income for their families and investments for their communities.

They’ve also paid a lot of tax along the way – which has allowed the Government to increase its annual investments in schools, health services, superannuation support, and other essential public services.

That contribution by business and hard working taxpayers too often goes unacknowledged: We all have hopes for new investments and better services, but before we dream up new ways of spending, we first need to collectively earn the dollars required to sustainably fund that spending.

Growing regional economies, and successful local businesses are vital to that equation. Put simply: To deliver the kind of country we all want – with better living standards, better opportunities for our kids and more financially secure families, Nelson and New Zealand needs more success stories like Cawthorn, Trinder and Pic’s.

That’s why our Government is so focused on delivering policies that support economic productivity and that give entrepreneurs, employers and firms the confidence they need to invest, hire, expand and grow.

That includes getting the basics right, such as low and stable inflation, manageable interest rates and credible fiscal management.

It means ensuring the Government doesn’t make it harder to do business by tying people up in red tape, endless consent processes, or sticking rigidly to rules that simply don’t make sense.

These sensible policy approaches are the base from which we will deliver better choices and investments in the years ahead.

I have enormous optimism in New Zealand’s economic growth potential.

We are a safe, secure country with established trading relationships and a global reputation as a good place to do business.

We are blessed with abundant natural resources – everything from ocean to freshwater, fertile land to minerals and temperate weather.

In a world worried about food security, we feed more than 40 million people with levels of efficiency and sustainability that are the envy of the world.

We have a long history of stable democracy, strong institutions and rule of law.

We’ve produced world-leading scientific breakthroughs, send rockets to space and continue to produce some of the world’s best digital effects.

There are many reasons for New Zealand to be optimistic that better times are ahead.

Even so, I’m not a total Pollyanna.

I’m conscious of the challenging economic circumstances many people in Nelson, and around the country for that matter, have experienced in the past few years and in some cases continue to experience.

Local employers and households have come through a post-Covid period of very high inflation and rapidly rising interest rates.

High inflation and high interest rates aren’t just numbers for economists – they’ve had big human impacts: elevating the cost of living, and putting a handbrake on business activity, with significant impacts for people’s jobs and incomes.

Our country has also been left with a sea of debt and red-ink in the Government books that will take time to repair.

The post-Covid ‘structural deficit’ has left a big gap between what the country needs to fund to deliver on the spending commitments we’ve made and what we need to earn to pay for that spending.

In effect, the Government is borrowing billions to bridge the gap, with a $13 billion deficit this year and forecasters anticipating deficits in future years too.

That obviously can’t go on forever, or else our kids and grandkids will be left with unsustainable debt and considerable economic uncertainty.

That’s why our Government is working carefully to bring the country’s finances back into balance: so we can start to pay down our debt and create better buffers for the future.

We want to ensure New Zealand is financially strong and resilient enough to effectively respond to whatever the future may throw at us: be it earthquakes, extreme climatic events or other events outside our control.

Restoring that fiscal balance, while continuing to increase investment in essential front line public services, requires careful prioritisation and some tough – but unavoidable – choices.

Believe me – I too would love the freedom to throw today’s Budget constraints out the door – but I’m always conscious that the dollars we spend today eventually need to be repaid. Freedom today could mean serfdom tomorrow.

The good news is that New Zealand has in recent months been turning the corner in our post-Covid recovery.

Inflation has been brought back under control, interest rates have dropped 200 basis points, exports have been growing, commodity prices have improved, tourists have been returning and business and consumer confidence has been on the up.

That growth is positive for Kiwis’ jobs and incomes and for the Government’s books. It provided a welcome backdrop as the Government started putting together this year’s Budget.

But, there’s a but. As you know, the world economy is now facing further headwinds, with United States trade policy changes, counter-tariffs, retaliatory measures, tariff pauses and still unfolding estimates of what this could all mean for global and regional growth.

Uncertainty abounds.

The impacts for New Zealand are twofold.

On the one hand, there is the first-order impact for our exporters who now face the prospect of higher tariffs being charged for them to export their goods to the US.

I know many exporters are finding it very difficult to see through the noise and plan for what might lie around the corner for them.

I think for example of the wine exporters of the Nelson-Marlborough region, who are nervous about the many implications different tariff regimes could have for their existing customers and for the way wine is traded around the world. Will they be competing with more European wine in the UK? Will they be better placed in a relative sense in the US?

It’s simply too soon for wine exporters to know and this makes it very difficult for them to plan.

Direct tariff impacts may well be uneven from firm to firm, sector to sector and market to market.

There will inevitably be both swings and roundabouts. For example, I spoke to a beverage manufacturer in Wellington last week who’d just taken a large order from China, as importers there were looking to find alternatives to US products which they expect will carry much higher tariffs into the future.

The Government has moved swiftly to gather the best possible information and insights about these unfolding implications for our exporters, relying on our incredible network of diplomats and representatives around the world.

Officials are addressing queries from exporters, have hotlines established, are delivering information webinars and are working with individual firms to help them understand the practical implications of tariffs, including for firms who have manufacturing in third countries or product already en-route to the US.

New Zealand Trade and Enterprise is currently providing tailored support to a group of 1000 larger exporters, including access to their in-market staff, their network of private sector exporters and financial advice.

For now, most business appear to be looking to navigate through the initial uncertainty rather than making dramatic changes in response.

The Government will keep providing exporters with information and advisory support and assess impacts as more certain information becomes available.

Beyond direct tariff effects, the second-order impact for the New Zealand economy is what forecasters are now predicting will be more financial uncertainty, potentially increased inflation pressure and a lower growth trajectory for the global economy and many of the countries with which New Zealand trades.

These are just forecasts at this stage, and, once again the actual impacts are still unclear. Put simply though: all these developments will make New Zealand’s economic recovery harder.

We can’t wish that away.

What we can do is focus on the things we can control.

This means it is more important than ever that New Zealand offers a predictable, steady approach to our economic and fiscal management.

In an unstable world we need to stay the course with responsible policies that provide stability, support investment and make us an attractive place for the world to trade and do business with.

New Zealand has the opportunity to position ourselves as a safe haven, and to continue our long history of honouring existing trade agreements and forging new ones.

Earlier this year, well before “Liberation Day”, I released the Government’s Going for Growth framework which sets out 88 policy actions to do just that. These actions are grouped under the Government’s five key thematic growth pillars.

Promoting global trade and investment was a key pillar then and it’s a key pillar now.

Our goal is to double the value of New Zealand exports within a decade so we are working to grow and strengthen our trade relationships around the world.

The Prime Minister kicked off the year in Dubai signing a new trade agreement with the United Arab Emirates and trade talks with India, soon to be the world’s third largest economy, are underway.

At the same time, we are making it much easier for New Zealand to benefit from international capital and investment.

A new agency, Invest NZ, is being established to welcome international investment into New Zealand, and the Overseas Investment Act is being reformed to make it easier for businesses to receive new investment, grow and pay higher wages.

There are four additional pillars in the Government’s Going for Growth agenda:

• Developing talent
• Competitive business settings
• Innovation, technology and science; and
• Infrastructure for growth

I encourage you to check out the full plan online but let me make just a few remarks about each.

Developing talent: This is about making the most of our most important asset, human capital, getting back to basics and arresting the woeful decline in the literacy and numeracy skills of our school leavers.

We simply can’t be the wealthy country we want to be if too many of our school leavers emerge from the school system without the basic skills they need to succeed in the modern world.

We’ve already acted to stop the slide and re-introduced structured literacy and maths to our schools, ensuring kids are receiving instruction in ways that work. We’re bringing practical knowledge and skills back to the curriculum and reporting on performance.

At the same time, we’re tuning-up our vocational education system to make it more responsive to industry and regional needs, and to ensure people wanting to acquire skills for a new trade or industry have good choices for upskilling. This means ensuring institutions like the Nelson Marlborough Institute of Technology can be locally nimble and responsive.

Competitive business settings: This is about both cutting red tape and ensuring we have rules that foster competition between big firms to deliver a better deal for New Zealand consumers.

In my view, in recent years New Zealand has in too many areas of life become stultifyingly risk-averse, and we now have a spaghetti of costly and complex rules and regulations that are holding back sensible development and clever ideas.

The Government has already zeroed in on a key target in this regard: the Resource Management Act.

We’ve passed a new fast-track law to bypass the burdensome court process and accelerate the yes for dozens of major projects that, if approved through a streamlined panel process, will drive jobs and growth across the country.

In this region, three projects have been identified as potential fast-track initiatives.

They include the Hope Bypass, already confirmed as a Road of National Significance in our land transport plan, with a proposal to alter the existing designation and acquire additional land outside that designation.

They also include the Maitahi Village housing development, including plans for a commercial centre and retirement village. I’m advised that this project is already being progressed through the fast-track panel process, with final decisions still pending.

The Mapua Housing Development, is also listed as a fast-track project with potential to enter the process. I’m advised that project would include up to 320 residential allotments, a recreational reserve, a community amenities building and parking, a wetland and restoration of the Season Valley stream.

Beyond the fast-track process we are also working at pace

to replace the Resource Management Act as a whole.

We’re advised our plans will deliver a 45 per cent reduction in administrative and compliance costs.

We’ve also worked quickly to lessen the regulatory burden on the agricultural sector. We back farmers, and we don’t want unwieldy rules stopping them making sensible decisions for their farming businesses.

Reform of the Health and Safety at Work Act is underway to reduce box ticking exercises and compliance costs.

The other aspect of this work is in the competition space.

Everyday Kiwis, visiting OECD economists and Ministers around our Cabinet table share concerns about the concentration of large businesses in some of our major industries, with mounting evidence that competition has suffered as a result, and that New Zealand consumers are missing out on a fair deal.

You’ll probably have noticed that we’re acting to improve competition in the banking and grocery sectors and we’ll have more to say about those as well as other sectors in the coming months.

Innovation, technology and science: This is about not only the Government’s investment in science but also the steps we’re taking to make it easier for businesses and industries to pursue their own innovation agendas.

Government science institutions are being streamlined into four much more commercially focused entities that will ensure our taxpayer investment in science is connected with the needs of a growing economy.

We’re also thinking hard about what we can do to incentivise New Zealand businesses to invest in the new machinery, technology and equipment that will lift productivity in the years ahead.

We know that faster-growing countries tend to have more ‘capital intensity’ in their businesses, which helps drive productivity. I’m keen to unlock more of that in New Zealand and am considering the best ways to support it.

Finally, infrastructure for growth. Roads, ports, hospitals, schools and more.

New Zealand has an infrastructure deficit that is reducing productivity and living standards.

We need to catch up with the rest of the world when it comes to how we plan, fund and build modern infrastructure.

We are putting together a 30 year National Infrastructure Plan and a new national infrastructure agency. Just last week we released New Zealand’s first health infrastructure plan, which sets out a national, long-term approach to renewing and expanding the country’s public health facilities.

Instead of building single, large-scale structures, the plan proposes a staged approach – delivering smaller, more manageable facilities in phases. This will mean patients benefit from modern healthcare environments sooner, while providing greater certainty around delivery timeframes and costs.

And yes, rest assured, redeveloping Nelson Hospital is a key priority for the Government. Work is already underway to expand the Emergency Department at Nelson Hospital, and earthquake strengthening of the George Mason Building is also underway. The $10.6 million ED expansion project is designed to meet the growing demand for emergency care in the area as part of the wider redevelopment programme for the hospital.

The Health Infrastructure Plan highlights the need for increased bed capacity at Nelson Hospital, earthquake strengthening, a new energy centre and a refurbishment of the George Mason Building. These improvements are key to ensuring the hospital is able to deliver timely and quality healthcare for the people of Nelson. These stages of development of course remain subject to future Budget funding allocations.

Conclusion

Taken together, all of this work represents a significant economic change agenda.

I doubt all of this will be welcomed by everyone.

It’s easy to say no to a new mine, to say no to concerts at Eden Park, to say no to more tourists, to say no to more housing, to say no to change. But cumulatively all those little “no’s” add up; they add up to a smaller, poorer country.

New Zealanders can’t afford that. We have to make it easier to get things done in this great country. We have to deliver on our untapped potential. We owe that to our kids.

Let me finish on a positive note: New Zealand faces some significant challenges and those challenges have only grown in recent weeks.

But if I could choose to be any country at this particular moment in time, I would choose New Zealand.

Our Government has a plan, and our plan will mean a stronger, growing economy and that growth will mean New Zealanders can live better lives. And that is what it is all about. Thank you and I look forward to your questions.

Source: NZ Music Month takes to the streets

Kia ora, aloha, good morning.

Interim President of the East-West Center, Jim Scott, distinguished guests.

It is an absolute pleasure to be here in Hawaii, leading a cross-party delegation through the Pacific. New Zealand’s commitment to the Pacific is foundational to who we are as a people. It transcends governments, political parties, and the disruptive events and controversies of the moment.

A core and enduring part of New Zealand’s approach is our determination to work with our Pacific brothers, sisters and cousins to forge together a more secure, more prosperous and more resilient future, which grows opportunities and possibilities for our peoples.

Our delegation is looking forward to an open, free-flowing discussion with you, representatives of the East-West Centre. This institution has, for generations, sought to promote dialogue about the developments in our region and the United States’ place in it. As the name of this Centre implies, the world works best when different cultures – from East to West – come together.

Before we start our discussion, I wanted to offer some reflections – as New Zealand’s Minister of Foreign Affairs – about the relationships binding New Zealand, the United States, the Pacific and the broader Indo-Pacific.

New Zealand and the United States are Pacific partners, as Hawaiians know well. Indeed, Auckland and Honolulu are two of the great Pacific cities: the northern and southern points of the so-called Polynesian triangle. Many, many Polynesians scattered across our vast, oceanic region have, over many, many generations, migrated to Auckland and Honolulu. These two wonderful cities stand as diverse, vibrant testaments to Polynesian histories and cultures.

We gather in Honolulu at an important, uncertain, anxious time in world affairs. Every day, we wake up to headlines about confronting events that are happening on the world stage.

It is a common human tendency to think that the events or ravages of the moment are unprecedented. That the challenges we face are uniquely urgent or complex. Indeed, the most overused word in politics is ‘crisis’. This, coupled with the hyperactive social media age we live in, can generate an urge to react too quickly and too stridently. To set out absolute principles to defend. To draw battle lines. To pick sides. To form teams. To fight.

But, being in Honolulu, it’s hard not to take a longer view of what the world is currently experiencing and of the choices facing New Zealand and our Pacific partners.

This morning, we were hosted on the USS Missouri, where the Pacific part of World War II formally came to an end. This was a reminder of the history of shared sacrifice that forever binds New Zealanders, Americans and people from throughout the Pacific.

Our peoples have fought, and died, together in defence of a free, open and democratic region .  A region in which our people are free to elect their own political leaders and to worship the god of their choice. And a region, the Pacific, that lives up to the promise of that name.

But this dark, painful chapter in our history also provides the backdrop to the efforts we have collectively made, in the eight decades since, to painstakingly build an international order based on dialogue, compromise, diplomacy and trust. This determination not to go back to an era of global wars – to prefer jaw, jaw to war, war – must always be at the forefront of our minds.

In recent weeks, the tendency to hype up a debate about how international trade works into a black-and-white, polarising issue has been unfortunate and misguided. The use of military language – of a “trade war”, of the need to “fight”, of the imperative to form alliances in order to oppose the actions of one country – has at times come across as hysterical and short-sighted.

For a small country like New Zealand, when events are moving fast and changing day-by-day, the best course is almost always to be cautious, to be modest, to be pragmatic, and to be practical. To wait for the dust to settle before making choices we may later regret.

Working closely with our one formal ally, Australia, we are guided by a cool-headed assessment of New Zealand’s interests. Those assessments are formed by equally sober analysis of our relative strengths and vulnerabilities, rather than any desire to draw sharp lines in the sand, especially during times when the sand is shifting so fast its final shape is unknown.

There are historical parallels here. Notwithstanding our strong, indispensable and long-standing partnership during and since the two World Wars of the 20^th Century, the governments and peoples of New Zealand and the United States have not always seen eye-to-eye. We have often fought side-by-side, but we have sometimes differed on certain military conflicts. New Zealand pursued a position on the nuclear issue with which the US disagreed. And US Presidents have not always been popular back home.

Some of us have been around long enough to witness the ironies in the cycles of history. In two World Wars, New Zealanders were there from the beginning – and our country lost more people per capita than almost any other. We have also contributed military forces towards trying to solve countless other conflicts, alongside other Western countries. So we know about sacrifice and burden-sharing.

But we also recall certain protestors, in New Zealand and across the Indo-Pacific, chanting “Yankees Go Home!” during the rancorous days of the late 1960s. Some of those protestors chanted those words perhaps unaware that, just a few decades earlier, their parents and grandparents had been praying that the Americans would arrive to save them.

We also recall the order-shattering change throughout American history. Presidents as different as Thomas Jefferson, Andrew Jackson, Abraham Lincoln, Franklin Roosevelt and Ronald Reagan all, in historically significant ways, upended their inherited orthodoxies. Yet the enduring experiment in democratic government that was created by America’s Founders still stands, unbowed.

Appreciating this history also serves to quiet the breathless language of panic because what we are seeing now is what many of our predecessors have seen before. So, one lesson is that cool heads and quiet diplomacy will succeed where talk of “fighting” will not.

My view of the strategic partnership between New Zealand and the United States is this: we each have the right, indeed the imperative, to pursue our own foreign policies, driven by our own sense of national interest.

But close friends do not need to be, and should not be, confrontational and rude with one another, as New Zealand sometimes was towards the United States in the mid-to-late 1980s. And we should never forget what binds and unites us, bonds stronger and more long-lasting than the controversies and headlines of the moment.

We should give each other the benefit of the doubt and a fair hearing, seek to understand each other’s perspectives, and find common cause and common purpose.

New Zealand looks forward to working with the new US Administration to support a peaceful, prosperous and resilient Pacific and wider Indo-Pacific region. We look forward to continue partnering across the interdependent areas of security, economics and development.

We were in Washington DC recently, to meet representatives of the new US Administration, including the Secretary of State and the National Security Adviser. One message they had for us was that the United States expected New Zealand to carry our share of the burden in keeping our part of the world safe and prosperous.

This New Zealand government, through decisions on defence capability and development spending, is seeking to meet that challenge under difficult fiscal conditions. To carry, like we did in the war that ended on the USS Missouri, our part of the burden of keeping our region and our world safe, free and open.  We do this because it’s the right thing to do. Because it’s in New Zealand’s interests.

One message we carried to Washington DC was that New Zealand wants, indeed needs, for the United States to remain an active, engaged and constructive partner in the Indo-Pacific.

Our discussions here in Honolulu over the next few days are designed to reinforce that message, and to carry forward the generations-old commitment of New Zealanders and Americans to work together for a more peaceful, more prosperous, and more resilient Pacific.

On this score, we valued our discussions in Washington DC last month and we look forward to more constructive dialogue in the days ahead. We acknowledge there is uncertainty and indeed anxiety over aspects of current US policy towards the Pacific. Part of that is a natural and regular consequence of a change of Administration in Washington. Part of it relates directly to recent US decision-making on such issues as development spending and tariffs – positions that, in our view, are still evolving. 

But our message to both our American friends, and to our Pacific family, is a timeless one. As we work through the issues facing us today, let us treat one another with open minds, hear each other out, opt for quiet rather than megaphone diplomacy, and remember our collective purpose of pursuing and protecting a free, democratic, open, prosperous and resilient Pacific. Let us proceed carefully, cautiously, and always as friends.

In the coming days, we will be reflecting about the past as we contemplate the future. We will be having dialogue about the Pacific with representatives of the US Government, the governments of Northern Pacific countries Palau, Marshall Islands, and the Federated States of Micronesia, as well as the Hawaiian state Government.

We will be visiting the Bishop Museum, one of the world’s largest repositories of Pacific artefacts, and Pearl Harbor – where the Second World War was dramatically changed on one, fateful day. And we will be laying a wreath in honour of American and New Zealand servicemen who died in defence of our region.

As we go through this interesting and important programme here in Honolulu, we will seek to remember those enduring values and interests that unite New Zealand, the United States and the Pacific. And we will continue to promote careful, pragmatic, quiet dialogue – aimed at deescalation and practical problem solving, rather than premature posturing.

That is the Pacific Way.

Thank you. 

Source: NZ Music Month takes to the streets

Kia ora and good morning everyone.

Before I start, can I acknowledge the Wellington Chamber of Commerce for the opportunity to speak to all of you this morning.

It comes at a difficult time for the global economy, with rising rhetoric, escalating tariffs, and the prospect of further retaliation to come.

I had originally planned to take this opportunity to speak about my Government’s plan for economic growth – to create jobs, lift incomes, and put more money back in the wallets of Kiwis.

I will still touch on that.

It’s my Government’s top priority and it frames just about every decision we take here in Wellington as we focus on improving the lives of all New Zealanders.

But with markets rocked and exporters facing uncertainty, I know there’s one topic front of mind for many businesses and many households.

So this morning I want to take some time to speak to those events and make the case for free trade and the rules-based international order.

Trade is the lifeblood of the New Zealand economy.

Whether it’s our incredible farmers and growers, our outstanding tourism industry, or our burgeoning tech sector, Kiwis businesses thrive when we compete on the world stage.

Our success isn’t an accident – and it didn’t happen overnight.

Successive generations of trade negotiators and political leaders have invested in relationships offshore, and worked hard to complete deals like CER, the China FTA, the CPTPP, and the more recent EU, UK, UAE and GCC FTAs.

Business leaders have moved rapidly, too – finding fresh opportunities for growth in emerging markets, and developing outstanding products back home that put New Zealand on the map.

Our rural economy in particular represents the very best of open and competitive trade – selling into difficult markets, with no direct financial support, and consistently coming out on top.

I could – and often do – speak at length about the contribution exporters make to the domestic economy.

But trade goes both ways.

Yes, export growth will be critical to improving New Zealand’s economic prospects in the coming years.

But the removal of New Zealand’s own trade barriers and embrace of goods and services imported from offshore has also led to a major improvement in our quality of life in recent years.

Our clothing is more affordable, our cars are more reliable, our diets are more diverse, and our holidays in Bali and Europe are a nice contrast to summers at the lake or the beach.

Free trade of goods purchased from offshore has also supported growth in productivity.

Kiwi exporters rely on the trucks, tractors, jet engines, computers, and smart phones we buy from overseas that make their businesses tick.

And it’s not realistic to expect that in a country of just five million people, we could make everything we need here at home.

Political leaders have tried that before in New Zealand – and it didn’t end well.

Older generations will remember the efforts we went to.

Governments imposed strict import controls and encouraged cars and televisions to be assembled here at home.

And like today, conflict offshore occasionally helped to send prices spiralling – but the response looked very different.

In the late 1970s, politicians imposed “carless days”, with stickers on your vehicle dictating which days you could drive to work, and which days you caught a ride with a friend or just walked into town instead.

There was no “work from home” in 1979.

Agriculture, today the backbone of our economy, was heavily subsidised and much less productive, much less diverse than the efficient and entrepreneurial sector thriving in New Zealand today.

Those failed policies weren’t just foolish economics.

They reflected the best efforts of political leaders to insulate New Zealand from an era of major social and geopolitical change.

History shows those best efforts were a mistake, that required years of difficult choices and careful recovery.

New Zealanders paid the price then.

I don’t intend for them to do so again.

Which brings us to today.

The events of recent days are the most significant challenge to the rules-based trading system since the General Agreement on Tariffs and Trade (GATT) was formed in 1947.

Action, reaction, and response have shocked financial markets.

As the Minister of Finance highlighted earlier this week, the direct impact on the New Zealand economy from the US tariffs announced last week is likely to be around $900 million or roughly 0.2% of GDP.

But the second order consequences of a region and a world retreating from trade and increasingly uncertain about its economic future will be more significant, despite the welcome news of de-escalation this morning.

I know for many businesses keeping an eye offshore and for those New Zealanders watching their KiwiSaver accounts, that could be confronting.

The exporters I’ve spoken to in recent days remain buoyant, rightly confident in the quality of their product, and their ability to navigate choppy waters.

But for countries whose prosperity is underpinned by global trade, the months ahead will be challenging for their economic interests.

Many commentators will see these events as just the next step in a longer-term trend towards economic security and national resilience, as countries insure themselves against emerging geopolitical threats.

Others have gone further, declaring an end to the era of free markets, free trade, and free people, and the rules-based international order underpinning it.

For my part, I’m not ready to throw in the towel quite yet. Kiwis have worked too hard and for too long, to give up on the values and institutions which have seen our country and the region we live in thrive.

So, for as long as I am Prime Minister, New Zealand will keep making the case for trade as a cornerstone of our prosperity.

Yes, we are a small country – but stature has never been a barrier to our success.

Take the P3 – a proposed trade agreement which began life under negotiation at APEC between New Zealand, Singapore, and Chile in the early 2000s.

Three small countries, practicing what we preach – and doing everything we could to create opportunity for our people through trade.

Today, that agreement lives on as the CPTPP and covers a dozen countries, including New Zealand and Australia, Canada, much of Asia, and most recently the United Kingdom.

In total, that’s roughly 15% of global economic activity, or $13 trillion USD – a long way from where we started just over twenty years ago.

The United Kingdom might be the most recent accession, but I expect they won’t be the last.

New Zealand will continue to work with like-minded countries to promote free trade as a path to prosperity and explore the role of the CPTPP in strengthening that vision.

One possibility is that members of the CPTPP and the European Union work together to champion rules-based trade and make specific commitments on how that support plays out in practice.

My vision is that includes action to prevent restrictions on exports and efforts to ensure any retaliation is consistent with existing rules.

Collective action, and a collective commitment, by a large portion of the global economy would be a significant step towards preserving free trade flows and protecting supply chains.

Clearly though, efforts at collective action won’t be enough to support New Zealand’s economic interests.

As Prime Minister, I have a responsibility to do everything I can to both bolster the existing rules-based order and to further strengthen New Zealand’s position offshore.

It’s why I have put so much emphasis on deepening our relationships with partners around the region, with visits throughout South-East Asia, Korea and Japan, the United States, and to India last month as we commenced negotiations for a free trade agreement.

It’s why my Government has worked so hard to close out fresh agreements with the UAE and GCC that enable additional trade and investment.

It’s why we hosted an Investment Summit in Auckland, making the case both for New Zealand as an outstanding place to do business and for the opportunity to enter long-term infrastructure partnerships.

It’s why on Monday this week the Minister of Defence and I launched the Government’s Defence Capability Plan, that lifts defence expenditure to 2% of GDP and ensures New Zealand pulls its weight for many years to come.

It’s why I will be on the phone later today to world leaders comparing notes on world trade, and testing what we can do together to buttress the rules-based trading system.

And it’s why I will be heading to the United Kingdom later this month to meet Prime Minister Sir Keir Starmer, to talk trade, security, and the geopolitical backdrop in Europe and the Indo-Pacific.

We can’t make the case for New Zealand sitting at home.

We have to position ourselves as advocates both for our own economic interests and the institutions that underpin them.

I’m very lucky to lead a Government with so many Ministers dedicated to that task, whether that’s the Foreign Minister, the Minister of Trade, or the Minister of Defence, each of whom having already made a number of significant achievements supporting New Zealand’s interests offshore.

Back home, the volatility offshore is a fresh reminder of just how important our focus on economic growth will be in the coming years.

As I said recently at our Investment Summit in Auckland, New Zealand can be a shelter from the global storm.

That brings a serious opportunity from ensuring our business environment is as welcoming as possible for investment and growth.

We are making serious inroads into that task.

Earlier this year, Minister for Economic Growth Nicola Willis published our Government’s Going for Growth Agenda, which outlines a range of actions we are taking to get the New Zealand economy moving and realising its vast potential.

Each of those actions fits into one of five pillars we have identified as critical to lifting economic growth and improving New Zealanders’ standard of living:

• Developing talent,
• Encouraging innovation, science, and technology,
• Introducing competitive business settings,
• Promoting global trade and investment,
• And delivering infrastructure for growth.

Across each of those pillars, we have Ministers working day and night to drive through reform – in transport, tourism, aquaculture, construction, advanced aviation, mining, energy, agriculture, and horticulture.

In just the last few weeks, we have presented our plans to replace the Resource Management Act, fix our broken health and safety laws, and make nation-shaping investments like the Northland Expressway.

We have introduced the Fast Track regime, streamlining the consenting process for projects of regional and national significance.

We are re-writing the Overseas Investment Act, so major investments from offshore are consented faster and more reliably.

We are tearing down the barriers to fresh investment in renewable and non-renewable energy, by repealing the oil and gas ban and ushering in new consenting rules for wind, solar, hydro, and geothermal.

And we are doubling down on efforts to showcase New Zealand to the world, promoting our tourism and international education sectors offshore so we can attract even more people to spend their money here.

I know there’s more we can do.

Growth has now returned, and the economy has turned the corner, but our reform agenda will need to continue at pace for us to out-run the challenges to growth facing us from offshore.

The challenges to the rules-based international order are intense and the strategic environment my government has inherited is more difficult than it has been for many years.

For New Zealanders who grew up watching events unfold in Europe and the Middle East, it will be confronting to watch strategic competition and the deterioration of rules-based trade come to our neighbourhood, the Indo-Pacific.

But the response for New Zealand cannot be retreat.

New Zealanders are at our best when faced with adversity and we thrive when we compete on the world stage.

To quote my friend the Foreign Minister, this isn’t our first rodeo.

Our export sector is jam-packed with talented, sharp New Zealanders who make great products – and create jobs here at home while they do it.

Farmers, growers, wine makers, and start-ups from all around the country investing in our nation’s future because they have confidence that better days lie ahead.

I’m not ready to call time on the rules-based trading system.

And I’m not ready for New Zealand to give up on our efforts to advocate for it on the world stage.

We’re not in this alone.

The same institutions that have served New Zealand so well for so long, also underpin the prosperity of so many of our friends and partners, many of whom are also continuing to make the case for free and open trade in recent days.

My government will keep making the case – overseas, here at home, with a strong voice and a consistent message.

Free trade works.

It lifts incomes.

It creates jobs.

It builds partnerships.

And it secures peace.

I think that’s worth fighting for – and I’m up for that fight.

Thank you.