Dear John,

It's certainly been an interesting two weeks in politics! Yesterday Nicola Willis delivered the 2025 Budget, Parliament has been consumed with what to do about the Maori Party behaviour, we've legislated to make pay equity more workable and affordable, and that's just a few things. Today's newsletter goes into some more detail, including what I've been up to around the Hutt.

First on Budget 2025. I'm really proud of the Budget, which I helped Nicola put together as Associate Minister of Finance. It's a responsible Budget that secures our economic future. It's worth recalling that when we came to government, we were in recession, inflation was sky high (as were interest rates) and debt was exploding. We're making really good progress. Here are the financial highlights:
* Real GDP growth is expected to accelerate to 2.9 per cent in 2025/26 and 3 per cent in the year after
* Wages are expected to grow faster than inflation and over the next four years there are expected to be 240,000 more people in jobs.
* The books will be back in the black in 2028/9.
* Net core Crown debt is expected to peak at 46 per cent of GDP before beginning to decline.

Three particular highlights for me. First, Investment Boost. ([link removed]) This is a new tax incentive that will increase capital investment in New Zealand. Investment Boost allows a business to immediately deduct 20 per cent of the cost of a new asset from its taxable income, on top of depreciation. This means a much lower tax bill in the year of purchase. Over 20 years, Investment Boost is expected to lift New Zealand’s capital stock by 1.6 per cent, GDP by 1 per cent and wages by 1.5 per cent. Investment Boost started yesterday and it's going to be brilliant for our Hutt Valley manufacturers!

Second, our KiwiSaver changes. ([link removed]) Budget 2025 makes changes to encourage Kiwis to save more, while also making the scheme more fiscally sustainable. From 1 April 2026, the default rate of employee and employer contributions, which is currently 3 per cent, will go to 3.5 per cent. From 1 April 2028, it will go to 4 per cent. These changes were recommended last year by the Retirement Commissioner.

To ensure that KiwiSaver’s costs to the taxpayer remain sustainable, this annual government contribution will be halved to 25 cents for each dollar a member contributes each year, up to a maximum government contribution of just over $260. Members with an income of more than $180,000 will no longer receive any government contribution.

Third, learning support. ([link removed]) Improving the results we get from our education system is the single most important thing we can do to improve the future productivity of New Zealand. But there are lots of children who need extra support to learn because of physical, behavioural, communication or other learning challenges. The extra Budget funding will provide more teacher aide hours, more specialist support, learning support coordinators, an expansion of early intervention services, and new learning support classrooms. It is the biggest investment in learning support in a generation!

There's lots of other things to mention - changes to Working for Families (an estimated 142,000 families with children will receive $14 more per fortnight on average), support for rates rebates for low income Super GoldCard holders, allowing prescriptions to be issued for up to 12 months if it is clinically appropriate and safe to do so.

What's in it for the Hutt? The Investment Boost incentive will be huge for us, but we're also getting a daytime urgent care service! There is after-hours urgent care available in the Hutt on weekends and after 5.30, but not during the day. That's set to change as a result of increased funding in the Budget. I'm also particularly pleased with the $600 million investment into rail, including for the Wellington and Hutt metro networks. We have a big maintenance and renewal backlog to sort out.

Pay Equity: There's been a big kerfuffle in the last couple of weeks about the government's changes to pay equity (including a senior journalist using the C word against Nicola). ([link removed]) Frankly the Labour Party has been spreading misinformation about it and has basically been lying about it ([link removed]) . We have not abolished equal pay or pay equity, but we have made it more workable. Back in 2020 Labour created a very complex scheme that resulted in admin workers being compared with civil engineers; social workers being compared with detectives; and librarians being compared with fisheries officers. The costs blew out from around $3.5 billion into the multiple billions.

So we've reset the law. Twelve existing pay equity settlements including for nurses, social workers, midwives, teacher aides, school librarians, care and support workers and a range of other female-dominated workforces remain. Those settlements resulted in higher pay for tens of thousands of women, and they continue to be funded by the Government, at a cost of around $1.8 billion a year. Future pay equity claims are expected and we've set aside money for them. But we've made the scheme more workable and more affordable - those savings are being invested in more schools, hospitals, and frontline services Kiwis need. Read Nicola's opinion piece here ([link removed]) - it's well worth a read - and don't believe the Labour spin. It was pretty frustrating to see Chris Hipkins refuse to condemn the gendered abuse dished out by a senior journalist at Nicola, Erica and some of my other colleagues. i got stuck into the issue in the
House here. ([link removed])

Maori Party shenanigans: I've had a lot of emails about the Maori Party antics. Here's the basic background - last year the Maori Party interrupted a vote in Parliament (a big no-no), did a haka, advanced on the ACT benches (also a no-no), and Debbie Ngarewa-Packed simulated shooting David Seymour (definitely a no-no). They were referred to Parliament's court, the Privileges Committee. Last week the committee reported back on the proposed punishment, which is 21 days in relation to the two co-leaders. The punishments are so severe partly because the Maori Party have never apologised, never turned up to the committee, and refused to even engage in the process. They show utter contempt for Parliament and taxpayers deserve better.

On Tuesday this week there was due to be a big debate over the punishments - but I moved to adjourn the debate to take the temperature down a notch, allow the focus to be on the Budget, and to make sure they could participate in the Budget debate. You'll be amused to learn that after all that, they didn't show up at all for the Budget! The government parties will vote in favour of the 21 day suspension when Parliament comes back in a couple of weeks.

Around the Hutt: Despite all of the busy work preparing for the Budget, it's been great to get out and about in the Hutt. The Hutt Valley Sports Awards last week were amazing, and it was a privilege to give the keynote speech for the first time. I also really enjoyed the Hutt Chamber of Commerce Manufacturing Expo last Wednesday, which I attended with my colleague Chris Penk (Small Business Minister). There's so many great things happening in the Hutt!

One final thing: Thank you to everyone who is delivering my 2025 community newsletter around the Hutt. We still have a few thousand to get into letterboxes - so if you could spend an hour or two delivering them, please click here to sign up. ([link removed]) It's really easy - just involves popping letters into letterboxes.

Have a great weekend.

Chris

P.S I'm hosting Nicola Willis on Monday 26 May for a Pink Ribbon Breakfast event for the Breast Cancer Foundation. Click here to buy a ticket. ([link removed]) 7am at Boulcott's Farm Golf Club - tickets just $50 and all profits will go to breast cancer.

P.P.S This video of me ([link removed]) crushing a car to demonstrate our new anti-boyracer laws has now been seen by nearly 1.5 million people!
Click here to buy a ticket. ([link removed]) Should be a great morning.
Budget 2025

Did you know the Budget is printed in the Hutt? Popped out with Nicola to BlueStar on Wednesday morning to see it being printed.
Road Safety Week

Were you a a road patroller when you were at school?

Proud to say I loved road patrol at Eastern Hutt School (Anna Paquin was my partner!)

I went to Gracefield school on Friday to close out road safety week. I spent time on road patrol with their school patrollers and did some road safety activities alongside NZTA, Beca, and Fulton Hogan with some students.

Remember to be a road safety hero and look out for yourself and others.
Newsletter Deliveries

Pounding the streets on the weekend. If you can lend a hand with these please let me know. ([link removed]) Just a few thousand to deliver.
Sports Awards

Another amazing Hutt Valley Sports Awards last week. One of the highlights of the year. Congrats to all nominees, winners and as always thank you to the organising committee led by Ken Laban. Photo by Brady Dyer.
Puku Pies

Puku Pies and Kai is now open at 47 The Esplanade, right by Bunnings!

Kiwis are sick of boy racers. We’ve announced new penalties to deter them from treating our streets like racecourses. Check out this video! ([link removed])
Special day

It was a very special day last Saturday 10 May. Did you realise that the Hardham Cup for Wellington Club Rugby is actually named after William James Hardham VC, who won the Victoria Cross during the South African War (1899-1902)?

Petone Rugby is celebrating its 140th Birthday this year and on Saturday 10 May they played Wainuiomata (the current holders of the Hardham Cup) on their Old Timers' Day. William Hardham was a member of Petone Rugby and played more than 50 games for Wellington.

The original Victoria Cross awarded to Hardham - and the Hardham Cup - was displayed at the Petone club rooms. The original VC is on loan from the Waiouru Museum. And as part of the celebrations, the NZ Remembrance Army ([link removed][0]=AZVX7b6PJH4W6Stu7TcodgrVHXU-ayj1LGPsADB1cv_1A-yphBmptZWjy2t6QsdzBfl2Na9taa94npSlC1S6GazMvqHN2DJpd79m_oWAUk9iO2TSZ7SHyXaDn-P3Tvd1bhiAfpGU4dWc9AyfNigkPriQ6T3EBjUA5Dha64kNyMTuVC8gIljIaPu91pwNhC1yaIl0G6efWGx0rUiSBYXh_-kQ&__tn__=-]K-R) in collaboration with the United Services Medals Trust and New Zealand Defence Force's Queen Alexandra's Mounted Rifles presented a set of miniature replicas of Hardham's military medals to Petone.

Was very sorry I couldn't be there due to having to be in Rotorua.
Melling

Pretty frustrating to learn that we can't demolish the old Melling station ([link removed]) and build a new one. I have kicked the tires on this pretty hard. The basic problem is that moving the station is part of the resource consent for the Melling/RiverLink project. Changing that is theoretically possible but would be expensive and time consuming. Contracts have also been signed. So time to just get on with it I reckon.
Great news for the Hutt!

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