Prime Minister, Christopher Luxon says a cabinet reshuffle announced today is set to deliver a refreshed team focused on unleashing economic growth to make people better off, create more opportunities for business and help New Zealand afford the world-class health and education Kiwis deserve.
“Last year, we made solid progress on the economy. Inflation has fallen significantly and now a steady march of interest rate cuts are translating into real financial relief for households. Having set the building blocks for rebuilding the economy, 2025 is all about going for growth and I am refreshing my team to underline this priority,” Mr Luxon said.
As part of the reshuffle, Minister of Finance, Nicola Willis, will also become Minister for Economic Growth – formerly known as the Economic Development portfolio.
“Her focus will be on leading the Government’s growth agenda to unleash the potential of our businesses to grow, develop talent and attract investment. That will mean co-ordinating and strengthening efforts that are already underway to deliver economic growth – and taking responsibility for new initiatives designed to promote growth and productivity in the New Zealand economy,” the PM said.
“In 2024, Nicola did a fantastic job delivering tax relief for hardworking Kiwis and restoring a culture of fiscal discipline – with New Zealanders now seeing the benefits in the form of lower inflation and interest rates. In 2025, I’m confident she will bring that same focus and dedication to the task of unleashing Kiwi businesses to grow at pace.”
In 2025, health is also a priority area, said Mr Luxon. Simeon Brown will take over the health portfolio from Dr Shane Reti.
“Last year, Dr Shane Reti worked hard to reset the culture and performance of Health NZ. It was critical to establish targets and refresh their leadership – and I am confident the organisation is heading in a much better direction that it was when we entered office,” the Prime Minister said.
“But I have also heard Kiwis’ concerns that they expect to see even more progress – ensuring they can access the care they need, when they need it. To deliver on that expectation, I have decided Simeon Brown will become Minister of Health.
“Simeon is an outstanding and diligent minister who has done an excellent job delivering on the Government’s priorities. Off the back of that performance, I have decided his skills are best placed to take leadership of our health system going forward.”
Dr Reti will instead take on a new role assuming responsibility for New Zealand’s universities and science sector.
In a statement, Dr Reti said it had been a privilege to serve in the role, and that he respected the Prime Minister’s decision.
“I want to acknowledge the health sector for all its hard work – tens of thousands of staff across the sector go to work every day to deliver better health outcomes for their fellow New Zealanders and they deserve our complete respect,” he said.
“I now look forward to the responsibility of continuing to work hard for Pacific Peoples, and in my new portfolios. Alongside the wider Cabinet team, I am committed to continue making meaningful improvement in the lives of all New Zealanders.”
Mr Luxon said a series of other Ministers are also expected to play even greater roles in the Government’s plans to unleash economic growth in 2025.
Chris Bishop becomes Minister of Transport, taking responsibility for an additional part of the Government’s ambitious infrastructure agenda.
Louise Upston picks up Tourism and Hospitality and also becomes Deputy Leader of the House.
Judith Collins KC becomes Minister for the Public Service, while Mark Mitchell picks up the Sport and Recreation, and Ethnic Communities portfolios.
“Simon Watts takes on the Energy and Local Government portfolios – both areas with significant reforms underway and expected to play a major role in our growth plan going forward,” Mr Luxon said.
Outside Cabinet, Chris Penk picks up Small Business and Manufacturing, while Andrew Bayly becomes Minister for ACC.
“I have also decided to bring in James Meager as a Minister outside Cabinet. He will take on the Hunting and Fishing, and Youth portfolios and the newly created role of Minister for the South Island. He will also be an Associate Minister of Transport.”
Mr Meager replaces Melissa Lee, who is no longer a Minister. The Prime Minister acknowledged the contribution of Ms Lee over the past year.
“She has worked incredibly hard engaging with the range of ethnic communities calling New Zealand home and I thank her for that service,” he said.
