What the State of the Nation Means for Canterbury Businesses

Prime Minister Christopher Luxon's recent State of the Nation address set a clear agenda for economic growth in New Zealand. The address outlined several key initiatives and policy directions that could significantly impact the region's economic landscape. Let's explore what this might mean for you and your business.

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A Focus on Competition and Investment

Luxon's emphasis on increased competition across various sectors could open doors for Canterbury businesses. His commitment to "unshackling the energy sector" might be particularly relevant for the region's burgeoning clean tech industry. It's an exciting prospect that could spark innovation and growth in this space, and unlock investment.

The announcement of 'Invest New Zealand' is looking really positive. This one-stop-shop for attracting foreign direct investment could be a game-changer for local businesses seeking international partners or funding to grow into international markets.

The new agency, modelled on Irish and Singaporean agencies, will focus on:

• Attracting FDI into high-potential sectors to boost productivity and innovation.
• Streamlining processes to significantly increase the capital available to invest in new and existing projects and enterprises including, banking and Fintec, critical infrastructure, including roading and energy projects, manufacturing and private sector growth.
• Increasing research and development (R&D) investment in New Zealand by multinational companies.
• Encouraging skilled professionals to enhance domestic capabilities and global connections.

Access to capital has long been a barrier to many New Zealand businesses looking to grow onto the world stage. With Christchurch and Canterbury now being a hub for aerospace, food and fibre tech, health tech, and high-tech services, the announcement of a dedicated body for attracting and facilitating foreign investment could be a game-changer for our region.

Resource Management Act Reform

The Prime Minister's commitment to repealing and replacing the Resource Management Act (RMA) presents a promising opportunity for Canterbury’s construction and farming sectors. The RMA has long impeded economic growth and productivity while failing to enhance the environment. Additionally, the consenting system acts as a barrier to New Zealand achieving its climate goals, as a recent report by the New Zealand Infrastructure Commission indicated that NZ is on track to miss between 11-15% of its emission reductions from energy and transport by 2050 due to consenting delays.

Luxon and the Government’s support for builders and farmers to drive economic growth is a welcome shift, especially for Canterbury’s agriculture sector, which is a cornerstone of our region's economy. These changes could reduce red tape, allowing farmers to focus more on what they do best.

For all RMA updates, visit the Ministry for the Environment for monthly updates, and you can sign up for updates sent straight to your inbox.

Tourism and Regional Development

While Canterbury wasn't specifically highlighted in the government’s tourism plans, the focus on supporting the tourism sector is encouraging for the region's visitor economy. Over time, there may be opportunities for local tourism and hospitality businesses to benefit from new initiatives and support, depending on the government's level of commitment. As the Prime Minister noted, “I think government can be doing more to make their life easier and enable opportunities for growth across the country.”

To stay informed, the Beehive Tourism and Hospitality Portfolio provides the latest updates and information.

The Road Ahead

The State of the Nation paints a picture of potential growth and opportunity for Canterbury businesses. However, the real test will be in the implementation of these policies and how well local enterprises can adapt and capitalise on the changes.

As we look towards 2025, it's clear that Canterbury businesses will need to stay agile and ready to seize new opportunities.

To stay informed about all our advocacy efforts, government policy changes, new initiatives, and announcements that may impact you and your business, sign up for our Latest Word newsletter from our Chief Executive, Leeann Watson.