PM Luxon's State of the Nation: Economic Recovery, Education, Law & Order, and Future Reforms

Economic Progress & Fiscal Responsibility

• 💡 New Zealand's economy is recovering, with inflation falling from 7% to 3% and interest rates dropping considerably.
• 📈 Business and consumer confidence have significantly risen, translating into greater investment and retail activity.
• ✅ The government is committed to tight fiscal management, aiming for a surplus by 2028-29 through $11 billion in savings.
• 💰 These savings provide headroom for tax relief to all Kiwis and investment in frontline services, avoiding increased borrowing or taxes.

Fixing the Basics: Education and Law & Order

• 📚 Education reforms include banning mobile phones, mandating an hour of reading, math, and writing, and introducing new literacy and numeracy curriculums.
• 📊 Early results show phonics achievement has improved from 36% to 58% for new entrants.
• 🚨 Law and order initiatives have cracked down on gangs, implemented tougher sentencing laws, and put more police on the beat.
• 📉 These efforts have led to 38,000 fewer victims of violent crime, a 16% drop in youth offending, and an 85% reduction in ram raids.

Navigating a Changing Global Landscape

• 🌍 The global rules-based system is rupturing, with countries respecting international law only when it suits them.
• 🛡️ There's a shift from economics to national security demands, including protection against economic coercion, cyber attacks, and terrorism.
• ⚠️ Efficiency is giving way to resilience as global trade becomes less certain due to rising tariffs and protectionism.
• 🚀 The government is increasing defense expenditure to contribute to regional security, humanitarian assistance, and disaster relief efforts.

Strengthening International Ties

• 🤝 New Zealand is deepening relationships in the Indo-Pacific, upgrading partnerships with Singapore, Vietnam, Korea, and ASEAN countries.
• 📈 Opportunities from EU and UK FTAs are maximized, with new deals concluded with the UAE and GCC.
• 🇮🇳 A landmark free trade agreement with India was finalized, reducing tariffs on 95% of New Zealand's exports.

Building the Future: Key Reforms

• 💰 KiwiSaver reform proposes gradually increasing employer and employee contributions to 6% each by 2032, aiming for greater retirement security and national capital.
• 🎓 NCEA reform will replace the current qualification with one featuring clearer grades, stronger vocational pathways, and higher literacy and numeracy standards.
• 🏗️ Resource Management Act (RMA) reform includes fast-track legislation for major projects and new bills to replace the RMA, aiming to halve resource consent requirements.