Prime Minister Christopher Luxon says a ‘productivity problem’ is driving skilled Kiwis offshore

• Prime Minister Christopher Luxon plans to address healthcare, safety and productivity to retain residents.
• Luxon emphasised education and skilled workforce growth as key to his long-term strategy.
• He noted the Reserve Bank’s OCR cut as a positive economic indicator.

Prime Minister Christopher Luxon says he has a plan to build a country where Kiwis want to stay, but healthcare, safety and productivity are holding us back.

Luxon told Herald Now’s Ryan Bridge that we have a serious productivity problem in New Zealand.

Last month it was revealed the annual rate of net migration gain has stabilised at 32,900 for the year to February.

That compares with a gain of 32,500 in the year to January, but follows a big slump as departures soared and arrivals fell last year.

He said although Kiwis are working hard, they have still not been able to “fundamentally change our standard of living”.

“We want to build a proposition where people say there is an awesome future here.”

Prime Minister Christopher Luxon says he has an "awesome plan" to build a country where Kiwis want to stay.

Luxon said two of the biggest things holding Kiwis back from that future were efficient access to healthcare and feeling safe in the country.

He said the key to his plan was ensuring the education of young people and growing the workforce with skilled workers.

Luxon said it was not going to be a quick fix, something a band-aid could just be put over - rather he had a long-term plan in place to make New Zealand a desirable place for Kiwis to stay.

“In recessionary times, people will go overseas where they have better opportunities.”

He argued the number of young people leaving is skewed because of the “post-Covid bubble” of people off on their OE all at once.

He also said the more the economy grows, the more Kiwis would be likely to stay. He argued the Reserve Bank slashing the OCR by 25 basis points to 3.25% yesterday was evidence the economy was moving in the right direction.

“What we are seeing now, is by getting on top of the wasteful spending, having financial discipline - it’s not sexy stuff.”

He told Bridge he would not resign in 2028 if they did not have a surplus budget and said he got “criticised either way”.

Luxon also said he was unsure if he had lost support with women in internal polling with the election looming next year.

“I am more worried about doing the right thing [for this country].”