New Zeal
and is turning a corner – and that’s no coincidence. We’ve been focused on fixing the basics of the economy and laying the foundations to build the future.
Last year was about driving change in the areas that matter most. We’ve made real progress, and there is more to come. The latest Treasury forecasts show growth strengthened through the second half of the year, unemployment is stabilising, and confidence is returning. Momentum is building – but sustaining it requires discipline, focus, and a clear plan.
A big part of fixing the basics has been getting inflation under control. Inflation has fallen from a peak of 7.3 per cent under the previous Labour Government to 3.1 per cent, and the Official Cash Rate remains steady at 2.25 per cent. That means more certainty for households, businesses, and investors. Interest rates have come down, which means many people are saving a lot on their mortgage.
We’re also tackling the structural barriers that have held our economy back. We are working to replace the failed Resource Management Act once and for all, to make it easier to build the homes, roads, and infrastructure New Zealand needs to grow.
New Zealand’s future prosperity depends on high quality infrastructure, like roads and public transport. Delivering and maintaining better infrastructure is a key part of our plan to fix the basics and build the future New Zealanders both need and deserve. The National Infrastructure Plan does exactly that by focusing on what needs to be built over the next 30 years. In the second half of 2025 alone, we began construction on $7 billion worth of central-government-funded infrastructure.
We’ve also unlocked new economic opportunities by rewriting outdated rules at Eden Park, allowing up to 32 concerts a year alongside more sporting events – bringing visitors, filling hotels and restaurants, and supporting jobs. One of the world’s fiercest sporting rivalries is coming to New Zealand, bringing with it thousands of Aussie visitors and an injection of over $17 million into the economy. State of Origin is just the first of what will be many events to take advantage of the new rules at Eden Park, boosting our tourism and hospitality businesses.
And on power prices – they are too high, so National is doing something about it.
Labour’s oil and gas ban increased energy prices, cut jobs, and made New Zealand more reliant on overseas coal. New Zealand is currently experiencing an electricity generation boom, and the National-led Government’s reforms will accelerate even more renewable energy projects.
However, rapidly declining gas supply has left our electricity sector exposed during dry years – when the sun doesn’t shine, the wind doesn’t blow, and we can’t fill up our hydro lakes.
That is why the National Government will contract to build a new LNG facility which will make power prices cheaper for Kiwis. The lack of gas supply is what causes spikes in energy prices that make your power bills more expensive. LNG will provide a backup source of energy when there is not enough renewable energy, preventing those spikes and therefore driving power bills down.
You may have heard Labour describe this as a ‘fuel tax’. Unlike their capital gains tax, which will tax every New Zealander, this policy will save you money.
The power companies will pay to build the new LNG facility. However, the security of the additional gas supply will mean lower prices, as power companies’ price is less risk. Those savings are vastly more than the cost of the LNG facility meaning lower power bills for you and your family. That’s the whole reason we’re doing it.
By fixing the basics and building the future, we’re creating the conditions for stronger growth, higher wages, lower power prices and more opportunities for all New Zealanders. -Hon. Chritopher Luxon, Prime Minister of New Zealand