Christopher Luxon goes all in on economy as National MPs accept reshuffle fate

While the MPs and their families gathered for a barbeque last night to catch up, it was all business on Wednesday morning, without some of the colour that usually accompanies these types of annual events.

There was no backyard cricket like caucus retreats of the past. No summer polos or sunglasses in sight. Despite it being a glorious warm Waikato day, with the hotel perched by the river, MPs’ meetings and media stand-ups were kept inside in bland, beige conference rooms.

In his first year in the role, Luxon had talking points he would very frequently employ with three central planks: rebuilding the economy, restoring law and order and delivering better public services like education and health.

But the Prime Minister’s opening remarks to media on Wednesday were kept nearly completely to economic matters, with other issues getting just a cursory mention.

“No doubt about it, still a very tough time for Kiwis,” Luxon said.

“That is why it is important we have a relentless focus on economic growth in the coming year. That is how New Zealanders get higher income, that is how they get ahead, that is how they set their kids, grandkids up for a great future in this country, and that is what we are focused on.”

He said he had listened to Kiwis over the summer who wanted the Government to double down on that.

Luxon will also, of course, be listening to the polls that show the cost of living remains New Zealanders’ main issue. The Taxpayers’ Union/Curia poll out last week showed exactly that, while also having National trailing Labour.

News of inflation keeping steady at 2.2% handily coincided with the retreat, but the slow GDP growth outlook forecast in December as well as the threat of Trump tariffs hang in the background.

And how the Government actually turns its reinvigorated talk about the economy into action remains to be seen. There were hints on Wednesday, including chatter of potentially more reforms to improve competition.

The Prime Minister will also deliver his State of the Nation address in Auckland on Thursday, and it’s understood he will announce a small part of the economic growth plan then.

The speech is also expected to contain a reality check of sorts about how to grow the New Zealand economy and the decisions that will need to be made to fix long-term challenges.

But despite this supposed refresh and refocus, Luxon on Wednesday wouldn’t say it was an admission National hadn’t given the economy enough attention last year.

“I am very proud of what we did last year,” the National leader said.

“We made some very significant structural reform last year around fast-track, around getting rid of red tape, freeing up our farmers, putting in place the basics on education, making sure we gave people tax relief, inflation relief, interest-rate relief.”

Luxon said attention had been given to growth, despite the Economic Development role sitting outside of Cabinet with Melissa Lee. That portfolio has now been rebranded as Economic Growth and handed to Finance Minister Nicola Willis.

In explaining what the Government had done last year to grow the economy, Luxon said it had been him, Willis and their associate Finance Ministers driving the agenda. There was no mention of how Lee specifically had been involved.

“As you saw in the weekend, we have refocused that portfolio,” Luxon said.

Asked by the Herald afterwards what she had contributed, Lee said economic growth sat across multiple ministers but work in her portfolio included screen production rebates and major events like the World Choir Games.

Lee, a National MP since 2008 who has been through a number of caucus changes, wouldn’t say if she believed she got a fair hearing, but it was “a bit disappointing” to lose her ministerial role.

But she also accepted it was up to the Prime Minister to decide ministerial roles.

“I do my job. If the Prime Minister’s prerogative is to appoint someone else, I have to respect that. I am 100% behind him. I am an MP and I will continue to be serving this Government.”

Another area the reshuffle signalled a renewed focus on was the South Island. Critics have claimed the Government hasn’t given it the attention it deserves, citing little progress on the new Dunedin Hospital, the Interislander ferries, and other infrastructure projects.

The South Island will become new minister and Rangitata MP James Meager’s fiefdom. Talked up for months as an easy bet for getting a ministry, Meager said he was still “gobsmacked” to get the call-up.

But like the Prime Minister on the economy, Meager wouldn’t accept the suggestion that creating the new role was a recognition the Government hadn’t done enough to support the mainland.

“I think you need a minister for the South Island to make sure you can advocate for the interests of South Islanders and when Government policies and decisions are made that might disproportionately affect South Islanders [so] that they have a voice at the table,” he said.

That voice won’t be at the Cabinet table though, with Meager sitting outside Cabinet. He said he can still lobby his colleagues.

Someone still inside Cabinet, however, is fellow South Islander Matt Doocey. He lost several portfolios in the reshuffle including ACC, Youth and Tourism. He’s kept his Mental Health and associate Health hats.

He refused to say if it was unfair on other ministers with numerous roles, including the likes of Chris Penk outside Cabinet.

“You’re asking me questions that … is the Prime Minister’s decision. You need to talk to him about that. What I have been told is I have been freed up to solely focus on mental health and support Simeon [Brown] coming in in Health.”

Penk said he was “really happy where I am”.

“I think everyone would rather be in Cabinet but I am really excited and really happy where I am. We are part of a team that needs to deliver and perform for New Zealand. It is a year where we need to deliver that economic growth and we are all laser-focused on that.”

Sir Peter Beck, the Rocket Lab founder, was the retreat’s guest speaker, there to discuss his experiences with innovation.

The Prime Minister talked up the need for science and technology to be part of the Government’s economic growth agenda. But he’s also given that portfolio to Dr Shane Reti, the same minister he just demoted out of Health.

Asked why he had done that, Luxon said Reti would be “brilliant” at linking science and technology with his other new portfolio overseeing the country’s universities.

Reti said the Prime Minister had indicated to him he hadn’t been working fast enough in the health space. He didn’t harbour any ill will.

“He has my complete support and respect, and I consider him a friend,” Reti said.

“He is looking for a different cadence from minister Brown, who will do a good job. In Health, it is always a slow ship to turn around, and you always push as hard and as fast as you can and that was what I did.”

Jamie Ensor is a political reporter in the NZ Herald Press Gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub Press Gallery office.