Since March, we have all witnessed the dramatic escalation and continuation of conflict in Iran and the closure of the Strait of Hormuz. These events have had unprecedented impacts on global oil markets, energy security, and inflation pressures here and around the world, reminding us just how interconnected and uncertain the global environment has become.

In these uncertain times, governments must stay focused on what is within their control. That means maintaining discipline with public spending, so we do not add further pressure to inflation, and ensuring that any support provided is temporary, targeted, and directed to those most in need.

In line with this approach, we passed law changes to boost the in-work tax credit, delivering targeted relief of up to $50 per week to around 143,000 working Kiwi families.

Despite global instability, there are encouraging signs for New Zealand’s economic outlook. Treasury forecasts the economy will grow by an average annual rate of 2.7 per cent over the next four years, unemployment is expected to fall from 5.5 to 4.3 per cent, and wages are projected to continue rising faster than inflation.

Importantly, the Government’s books are now forecast to return to surplus in 2028/29 – one year earlier than previously expected – with debt also beginning to decline sooner as a share of the economy.

This is important as we have over $200 billion of nominal debt that has to be serviced with interest every year. The interest this year alone exceeds $9 billion, which is more than we spend annually on police, justice and corrections combined!

These improvements reflect a disciplined approach to managing the Government’s finances: slowing spending growth, prioritising taxpayers’ money to support economic growth, and reducing wasteful expenditure where possible.

Part of building our economic future is making sure we save more so that we can invest more as Kiwis. That is why National has pledged to make KiwiSaver compulsory for all workers from 2028 and gradually lift minimum employee and employer contributions to 6% each by 2032, creating a 12% total retirement savings rate.

It's all part of our plan to fix the basics and build the future.

I look forward to seeing you out in our community sometime soon.