The PM gave a very significant speech recently. Matthew Hooton who is often fiercely critical of Luxon said it was “the most honest, realistic and substantive prime ministerial statement since the era of sloganeering began 20 years ago”.
I urge people to read it themselves. Parts that stood out for me were:
For too long, we’ve assumed our location protects us, that an ocean and a quiet reputation are enough. They aren’t. Geography gives us time, but it doesn’t give us immunity.
We have assumed our international relationships would carry us. They matter enormously, but we must invest in them. They are not unconditional; they are sustained by contribution. Partners support those who show they’re willing to help themselves.
We have assumed large investments in renewable energy would insulate ourselves from energy shocks offshore.
This is the opposite of Helen Clark’s benign strategic environment.
Secure and affordable energy matters just as much for manufacturers here in Auckland, as it does for mums and dads battling to keep up with the cost of living.
Secure access to global markets matters just as much at the milking shed, as it does for cutting edge companies like Halter and Rocket Lab, competing for capital and talent on the world stage.
And financial security matters just as much for Kiwis meeting the cost of a mortgage, as it does for governments worldwide grappling with the cost of borrowing.
The bottom line is we can’t have prosperity – more jobs, more exports, and higher wages – without security.
Luxon is basically making the case for how vital national security is, but that it is more than military. It is energy security, market access and financial security also.
New Zealand’s energy vulnerability is no longer a theoretical risk; it is a live crisis on full display in the Strait of Hormuz every single day.
Every week I speak to farmers, growers, manufacturers, truck drivers and tradies whose lives and businesses have been affected by events half a world away.
And that’s not just the rough and tumble impact of globalisation.
On too many occasions, private capital, eager to bolster domestic energy production, has been pushed to the sidelines by overzealous planners and politicians in recent years.
Several high-profile projects are now getting underway, thanks to our reforms like Fast Track, which I expect will continue to grow in popularity by leaps and bounds.
The reality is that when faced with energy shock after energy shock, it’s very hard to justify backing the skink over the solar farm.
Our lack of domestic supply is now an issue of national security. We must be less dependent on importing energy. That means producing more energy in NZ, and we can’t afford to be picky over what type of energy it is. We just want energy that can’t be blocked by a few guys with rocket launchers.
Energy independence must be treated as an immediate national security interest, instead of a contributing factor to a long-term climate strategy.
I’ve been anti-coal for a fair while, based on its greenhouse gas emissions. But you know what, having a huge warehouse of coal somewhere in case we need it isn’t a bad idea – especially as under Labour we had to import coal from Indonesia.
t’s worth acknowledging that at least some of the political fracturing evident in Europe in recent years is the result of politicians refusing to implement the preference of their voters on immigration.
Earlier this year, Erica Stanford spoke on many of the recent changes we’ve made to strengthen our immigration system, designed to prioritise skilled, not unskilled, migrants – through higher English language requirements, more enforcement and tougher penalties.
The temporary work visas granted under the India FTA are anchored in that approach, with visas available for specific occupations, where we have workforce shortages.
It’s an issue we’ll watch closely, and you should expect to see careful policy on immigration from National as we get closer to the election.
And my message to the business community is that when it comes to immigration, when faced with a choice between social stability and your bottom line, I will choose the former every single time.
Immigration done well is beneficial to NZ – economically and socially. But too much immigration too quickly can cause infrastructure challenges, and can raise issues with integration. I’m going to do a more detail post on the pros and cons and complexities of getting immigration right. Europe is a case of getting it wrong.
Finally, our financial security.
The truth is that small countries which borrow money from offshore can only live on credit for so long. Eventually, the bill must be paid.
Spending and borrowing too much can be just as big a threat to our national security as not spending enough of the NZ Defence Force.
I agree with Matthew Hooton, that it was an excellent speech.