WELLINGTON, Jan. 19 (Xinhua) -- New Zealand Prime Minister Christopher Luxon on Monday outlined his National Party-led government's plan to "build the future" through continued economic, education, and planning reforms.
In his State of the Nation address in Auckland, Luxon said the country's recovery is taking hold after a difficult period of high inflation and rising costs.
The address, delivered as New Zealand enters its 2026 election year ahead of an election date announcement later this week, underscores the National Party's campaign strategy of highlighting economic recovery while pledging deeper reforms to address voter concerns over living costs.
Inflation had fallen from above 7 percent to 3 percent since the National Party-led coalition took office two years ago, while mortgage rates had eased and more children were meeting literacy targets, Luxon said of his government's "fixing the basics" efforts.
"There is more to do. It is not enough to just fix the basics, but you can't build the future until you've got the fundamentals right," the prime minister said.
In his speech, Luxon credited tougher law enforcement with reducing violent crime and vowed to push ahead with bold reforms, including overhauling KiwiSaver retirement savings, replacing the National Certificate of Educational Achievement school qualification system, and scrapping the Resource Management Act to speed up infrastructure and housing projects.
Luxon said KiwiSaver contribution rates will rise from 3 to 4 percent by April 2028, with a goal of 6 percent for both employers and employees by 2032.
Chris Hipkins, former New Zealand prime minister and the opposition Labor Party's leader, criticized Luxon for ignoring housing and healthcare in his speech, while prioritizing slogans over meaningful policy substance. ■
