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Home / Business

Don’t be too quick to call Christoper Luxon’s demise as Prime Minister - Fran O’Sullivan

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
21 Feb, 2025 04:00 PM5 mins to read

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Prime Minister Christopher Luxon arriving for the Intelligence and Security select committee hearing at Parliament last week. Photo / Mark Mitchell

Prime Minister Christopher Luxon arriving for the Intelligence and Security select committee hearing at Parliament last week. Photo / Mark Mitchell

Fran O'Sullivan
Opinion by Fran O'Sullivan
Head of Business, NZME
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THREE KEY FACTS:

  • Christopher Luxon says he is focused on economic growth, cost of living, and fiscal issues.
  • He has organised an Infrastructure Investment Summit to spur public infrastructure projects and attract foreign investment.
  • Barbara Edmonds and other Labour members will participate, highlighting bipartisan commitment to New Zealand’s long-term success.

A shout out to Christopher Luxon: Keep on breaking eggs before they break you.

It’s been interesting to read all the repetitive columns predicting Luxon’s demise – either imminently as my friend Matthew Hooton reckons or at the endpoint of a long, slow march to oblivion as my colleague Simon Wilson avers.

All politicians’ careers end in oblivion. Just saying.

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But Luxon is just four years into his political career and notwithstanding personal poll slumps; stroppy coalition leaders that he allows a very long chain; a press corps that is affronted by changes that personally offend them and more, he is committed to leading change to get this country out of a hole.

The Prime Minister is imperfect – we all know that. He is clunky and prone to platitudes.

But he had the guts to wrestle control of a hopelessly moribund opposition party, knock it into shape, then forge a Coalition Government with two of the most wily politicians New Zealand has ever seen which is delivering on key pledges in the respective coalition agreement.

If anyone doubts the difficult world New Zealand faces just consider events this week with US President Donald Trump playing hardball with Ukrainian President Volodymyr Zelenskyy; China’s nobbling of the Cook Islands and naval incursion into Southern Pacific waters; and concerns that the international trading system that serves this country well is on the way out. The Prime Minister has to be on form.

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At a recent event held under the Chatham House rule, business leaders were treated to an inside view on how influential Wellington players view the PM.

It’s fair to say there has been a revolution at the heart of Government.

Luxon has been focused on the cost of living, fiscal issues and now economic growth.

As one player related, they had not seen before a Government with such energy and drive and a clear sense of mission. The PM’s quarterly plans were driving change.

The fact that Luxon is still a political neophyte wasn’t necessarily a negative. Sure, he would make mistakes. But there were some real advantages because he was not part of the machine. He not had nine years in Parliament to get institutionalised. He was impatient and demanded action: “He just wants stuff done”.

I found this refreshing. It’s not a view you get however from the PM’s daily jostles “on the tiles.”

So to a prediction.

The PM’s upcoming Infrastructure Investment Summit won’t bomb.

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It has acted as a spur to get public infrastructure projects to the investable stage. Deals don’t happen overnight and it is ludicrous to claim if they don’t follow swiftly then Luxon should get the boot.

Chief investment officers have protocols to follow.

Now that Luxon has personally invited Labour’s finance spokesperson Barbara Edmonds to take part, investors will take confidence that the adults from both sides of Parliament are in the room and committed to New Zealand’s long-term success.

This is important, and it is to be hoped that on several crucial policy issues of importance to New Zealand, particularly defence and security, the two main political parties will also find some commonalities.

Luxon will field at least 15 Cabinet members over the two days the summit is held at the Park Hyatt hotel. Not only is the Park Hyatt Auckland’s top international hotel, but it is right next to the Viaduct giving the visitors easy access to the city’s key asset – the harbour.

The Prime Minister will make the formal opening by charting New Zealand’s ambition. Finance Minister Nicola Willis will speak about her developing economic growth strategy.

There will also be updates on NZ’s developing long term infrastructure strategy and regulatory changes including streamlined processes and tailored support for foreign investors.

Edmonds has now got a 20-minute speaking slot where she is expected to talk on Labour’s developing approach to investing in New Zealanders and how foreign direct investment can grow jobs, incomes and skills.

She spoke late last year on how New Zealand can take advantage of US investment, bringing a fresh perspective on Labour’s approach to fostering stronger economic ties and capitalising on opportunities.

Other Labour frontbenchers will also attend.

As I tipped in last Saturday’s column, Infrastructure Minister Chris Bishop made the initial overture. Luxon followed up with a personal invitation. Treasury officials talked with Edmonds’ team, then Bishop acceded to her request for a speaking slot. It is how it should be.

The overall drive is to explore investment opportunities across key sectors, and forge strategic relationships that will shape the future of New Zealand’s infrastructure landscape.

There will be sector-specific Ministerial roundtable discussions and presentations with iwi representatives highlighting the opportunities within the $80 billion Māori economy.

Importantly there will now be a showcase of private sector opportunities within growth sectors, including renewable energy, clean tech, advanced transport and aquaculture.

With the Deputy Prime Minister, and Ministers of Health, Justice, Defence, Space, Corrections, Māori Development, Energy, Local Government, Oceans and Fisheries, and Resources all in the room this is an opportunity for New Zealand to put its best face forward.

If he was to have it all over again would Luxon change anything?

Maybe the sequencing of transformational policies by putting those that spur growth first.

Being bolder. Going harder and faster on change. Not rolling the political dice on the fiscal squares at the expense of investment.

But it is what it is. Back to the motto: Keep breaking those eggs before they break you.

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