In a historic moment for New Zealand, Christopher Luxon, the former CEO of Air New Zealand, was sworn in as the country’s 42nd prime minister on Monday. The 53-year-old leader, heading a conservative coalition, outlined his top priority as the urgent need to improve the nation’s economy.
Luxon assumed office six weeks after his National Party emerged victorious in the general elections, marking the end of Jacinda Ardern’s six-year tenure as the head of the Labour Party. Luxon’s party secured 38 percent of the vote, the highest proportion among all parties, forming a coalition with the conservative ACT and populist New Zealand First parties to establish a majority in the 123-seat parliament.
In his first statement as prime minister, Luxon emphasized the critical task at hand, stating, “It is an honor and an awesome responsibility. The number one job is to fix the economy. We have to reduce the cost of living and get inflation under control so we can lower interest rates and make food more affordable.”
The economy has been a focal point of discussion, given the challenges faced by the previous Labour administration in managing living costs, exacerbated by global issues such as pandemic-related supply concerns and Russia’s invasion of Ukraine.
Luxon aims to address these economic challenges through a comprehensive approach. Under the coalition agreement, he has committed to delivering tax cuts and increasing the police force by 500 officers within the next two years. Additionally, he plans to streamline government operations by implementing a 6.5% cut to the public service.
The new government’s agenda also includes the repeal of tobacco restrictions introduced by the previous administration. Luxon, while acknowledging the decline in smoking rates over the past three decades, expressed disagreement with certain aspects of the policy, including the concentration of distribution. Critics, however, argue that such a move could be a setback for public health and a victory for the tobacco industry.
Also in a notable departure from tradition, Luxon announced that the role of deputy prime minister would be shared in two 18-month stints. Winston Peters, leader of New Zealand First, was sworn in alongside Luxon as deputy prime minister but is scheduled to hand over the role to ACT leader David Seymour in May 2025.
Luxon wasted no time in setting the agenda for his administration. He plans to hold his first Cabinet meeting on Tuesday, where the focus will be on finalizing a 100-day plan. Additionally, he revealed intentions to visit Australia before Christmas Day.
As the new government takes charge, Luxon stressed the importance of receiving a Treasury briefing on the state of the government’s finances, expressing concern about a deteriorating financial picture over the past few months.
Chris Hipkins, the outgoing prime minister, who officially resigned on Monday, extended well-wishes to Luxon and his coalition partners. He acknowledged the challenging times the country has been through but expressed optimism about the economy turning a corner. Hipkins intends to remain in Parliament as the opposition leader, contributing to the ongoing political landscape in New Zealand.