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September 21, 2025 11 mins

Cabinet expects to make a final decision later this week, on whether New Zealand will formally recognise a Palestinian state.

Australia, the UK and Canada have all formally announced their recognition of Palestine.

Israeli Prime Minister Benjamin Netanyahu has condemned their moves, saying a Palestinian state would be a "huge reward to terrorism" and "will not happen".

Chris Luxon told Mike Hosking that New Zealand will make its own decision.

He says irrespective of the decision New Zealand makes on state recognition, the bigger issue is how to make the region calm and peaceful again.

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Episode Transcript

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Speaker 1 (00:00):
And Monday morning, the Prime Minister is with us. A

(00:02):
very good morning to.

Speaker 2 (00:02):
You morning Michael, to be with you.

Speaker 1 (00:04):
Do you feel a bit in battled given what happened
last week?

Speaker 2 (00:07):
Oh like, I don't know where that all came from.
I mean, I know I came from zero point. I
came from zero point ninety stats due to two growth.
But I think you know the reality is, you know,
it's been, no doubt about it, very difficult quarter. You
and I talked about it. We could feel it, you
can see it, and you know that is a function
of just uncertainty. Cause with those Trump tariffs in that
period of time previous six months, we were growing strongly.

(00:28):
We're growing again now we'll grow even stronger as we
go into Christmas, and we've got a lot of things
going on, so I think, you know, look, I know
it's difficult and tough times. I feel like we've got
the right economic plan. We've got relief for tax relief,
we've got interest rate relief, got inflation relief happening. That's
helped primary industries certainly they having record years. That's great.
We know we've got work to do in Auckland particularly

(00:49):
and Wellington as well.

Speaker 1 (00:50):
Okay, just tick this off for me. Will we be
hearing about the Reserve Bank government this week? Could be
very shortly, okay, and you know who it is.

Speaker 2 (00:57):
Yes, you're you're.

Speaker 1 (00:58):
Personally happy with her. Yes, And we will be transformational
for the bank and so much.

Speaker 2 (01:03):
We'll have a really good governor. Yeah, okay.

Speaker 1 (01:05):
Is there electricity significant electricity reform coming from Simon wat
this week?

Speaker 2 (01:10):
It'll be before the end of this quarter. He's got
a weekend a bit yep, okay.

Speaker 1 (01:15):
And as when we say substant up, he's talking about
something as big as you know, hasn't We haven't seen
this since the nineties.

Speaker 2 (01:20):
How big is it? Well, I mean there's a whole
bunch of questions around electricity and energy. You know that
we actually should have abundant, affordable electricity energy in a
country like this. We've got heaps and natural resources to
be able to do exactly that. He's thinking very deeply
about thermal and firming capacity because actually, you know, we
need gas. We need gas for probably the last ten

(01:41):
to twelve percent of our energy mix going forward for
some time. We're uniquely the only country I know moving
away from domestic gas to Indonesian You know, imported coal
at the moments, that's insane. So he's got to deal
with that issue. We've got to make sure that we've
got the gent tailors able to access you know, contingent liability.
We've got Lake which they're doing that through fast track.

(02:02):
We've seen you've seen gent Taylors, for example, come out
and say, We've said to them, you must be able
to sell to those other twenty smaller companies at the
same rate you sell to your own retailing arm, which
is quite you know, quite ballsy sort of move. So
he'll put together a whole package of things.

Speaker 1 (02:16):
So this is transformational.

Speaker 2 (02:18):
Well, I think it's about dealing with the challenges we've got.
You can call it. You'll make your own determination when
you think it's transformational. I think he's got a comprehensive
energy package that actually is going to deal with issues
that we've got.

Speaker 1 (02:29):
Right now, are you splitting the gent tailors?

Speaker 2 (02:32):
You know, I wait for him to talk to you
about what he's proposing, So you are I say to you,
we feel like we've done a lot of that in
the last few weeks when we said to the gent tailors,
you sell the same rate that you sell to you, not.

Speaker 1 (02:42):
Necessarily, because my only argument against that would be that
part of the argument you ranted on Onslow is that
if you don't have consistency, yep, you've got upset in
the market. That's why Gen Taylors.

Speaker 2 (02:53):
Would he's coming out. So there's massive clarity because what
we want is those gent tailors to be investing significantly
in generation. Part of Onslow's problem was that that was
sitting out there and as a result, they weren't clear
whether they were going to invest or not invest because
Onslow was sitting there and that would have been a
bit of a problem for their investment. We've made that
really clear. Onslow's God, we expect them to step up

(03:14):
their investment.

Speaker 1 (03:15):
So you mentioned the lakes and access to the lakes,
so there's a massive fight over lake how we are
at the moment. Of course, no one locally wants it
and it's just a scrap. So what do you do
in a country that wants a solution but doesn't want
it in their backyard.

Speaker 2 (03:26):
Well, as I said, we've basically made fast track available
to the gent tailors. They've put put applications and around
all of that. I don't want to get ahead of
those decisions obviously that would come through that process. But
you know the reality is we're not going to have
lights turn out in this country and what we went
through last year was unacceptable and it was a function
of poor energy policy that had been in place for

(03:46):
some time and we've got to fix that.

Speaker 1 (03:48):
And it still is problematic though. Is I mean we
can't underplay the problems with gas?

Speaker 2 (03:52):
Yeah, no, exactly. I mean gas is a rend charge
because essentially the chilling effect of the ending the oil
and gas ban, what that did for international investors. If
you've got hundreds of millions of dollars tied up an
investment here and all of a sudden overnight, it was
total that what didn't land well for New Zealand with
the investor community in the area of gas production. So
that's why we put the two hundred million dollars aside

(04:13):
to say we'll co invest to give you some certainty
with repelling the oil and gas band. We've got some
other support in there so they actually know that. Actually,
if you want to come to Zelean and has anyone
actually fronted you, there's a few that are interested in
sort of talking that through. But we also need to
even look at things like importation potentially of gas as well.

Speaker 1 (04:30):
You know I've been talking about that for over a year.

Speaker 2 (04:33):
Yeah sure, but it's quite tricky to do to get
the infrastructure in place to support something like that. But
you know, in the medium term that's something we should
be looking at.

Speaker 1 (04:40):
Okay. So Shane Jones was on the program between seven
and seven thirty was he's already started as campaigning. So
what I what I didn't realize He's got problem with
the sand mining in Taranaki. They've gone appointed a forest
and bird lawyer and this is the panel that's looking
at this. Why didn't you guys appoint the panel? He's
arguing that it was done by somebody else he paigned

(05:00):
or the New Zealand first campaigned, and you guys stood
against it. Why is it you're being held up by
these panels? Because tell me how many fast track projects
have been ticked off?

Speaker 2 (05:08):
I think there's two that have come through.

Speaker 1 (05:10):
We've only had one.

Speaker 2 (05:11):
We've got the warves come through. We had the big
residential development come through and Nelson that's okay, So it's
not as fast residential one up around it, and there's
about age or so that you've held up the panels. Well,
I mean we're gonna we are looking at what's fast track,
whether it can actually make it even faster, and whether
it's actually working in.

Speaker 1 (05:28):
The way it's not fast two is not fast, no no.

Speaker 2 (05:31):
But but if you think about it, the legislation only
got passed in the first quarter of this year, takes
a six month process to work through. You know, it's
what we've always said around fast track. So you're happy
with it, Well, I mean, I just look at the
Wolf's decision that was going to be five years under
the old RMA. We did that within six months. That's
about when the projects also launched.

Speaker 1 (05:49):
Understand that. But I mean, yeah, that's a great decision,
and that's what we want to see more of that.
I just want to see more fast tracked decisions. And
he's already complaining you can't get You've got the forest
and Bird lawyer and holding everything up and they're consulting
with the Mountains.

Speaker 2 (06:00):
Both Jones and Bishop are the two that are actually
putting the policy together for the government. They work very
closely together on that. They're both coming forward with legislation
and the next next few well before Christmas, that will
actually speed up fast so you're.

Speaker 1 (06:13):
Going to blow the panels up? Have you done something
wrong with the panels?

Speaker 2 (06:16):
Well? I think there's things about process where we sort
of you know, have we got the panel constitution right
in terms of is it just old irma folks that
are still thinking in the old way when we're actually
saying as a government, we have clearly prioritized economic growth
is what we want to be doing. But equally there's
other things like you know, councils, you know, making capacity
available for once a project's fast tracked, will do the

(06:38):
water services get into that residential development because we've said
that's a goes so let's make sure it does actually happen.
So there's just you know, it's natural there's some tweaks
if the things aren't working the way they are intended.
Who want to make sure that we're being and adjusting?

Speaker 1 (06:50):
Sure, because the politics of this, you're going to run
out a runway if you're into next year you're still
trying to tell me that fast tracks, fast tracking, you
haven't got any you know what I'm saying. I mean,
you got to work for you.

Speaker 2 (06:58):
Yeah, I get it, but this things on that planning
Laura and I think, you know, you take a step
back and say, right at the end of the first term,
what will we have done. We will have done RMA reform.
We did, we killed one. We introduced fast track to
put the defibrillators on and try and break the system
and mucket, you know, and get it moving. By the
end of this year, we'll have our first reading of
the RMA you permanent solution in place as well. We'll

(07:18):
continue with fast Track. Obviously, we will have done educational reform.
We've made a big investment in defense, and we've done
a lot of work on law and order, for example.
So I think there'll be some really good things that
we're doing, and you'll see an economy that's continuing to brandon.

Speaker 1 (07:31):
I reluctantly ask you about this because I'm so over
but I watched you and your post cabinet press conference
last week. Can you explain to me what is it
about the media that are so fixated with this Palestine thing?
Because I looked at the questions and they almost seem
bored until we got to Palestine and they went mentally.

Speaker 2 (07:50):
Yeah, it was a good part of the postcab Look,
I mean, the thing on Palestine's state recognition is there
are friends of ours that have done it. There are
friends of ours. I get it, I get it. We
will make our own decisions. But the bigger issue is
actually it's not whether you're pro Palestine a pros where
it's actually about pro peace and irrespect of the decision
we make ultimately on state recognition. The bigger issue is actually,

(08:11):
what the hell are you going to do to actually
get that region stable, calm and actually peaceful again, because
that's in our interest. Now we're a long way away
from it. We have very little to do with the
Palestine in Israel in terms of trade or investment or
those kinds of things. But you know the answer is
Hamas are a terrorist organization. They need to release hostages. Equally,
Israel has to respect international law and protect civilians and

(08:34):
make sure there's humanitarian aid and assistance and get out
of military action. More military action is not helping as
you are seeing, is this your fault?

Speaker 1 (08:41):
In other words, if you'd made a decision one way
or another, I don't care, earlier on, you wouldn't be
getting this fixation. No.

Speaker 2 (08:48):
Look, we're just being I mean, we're trying to be transparent.
About it. You know, you could ask the question, should
we just sat on our hand, you know, sat quietly
on it and just announced the final decision. But you know,
I felt it was important and Winston felt it was important.
We both felt that way that we should be transparent
and say, look, you know, we've had a series of
preliminary discussions. It's a complex issue, but we want to
do it in a judicious, cautious, proper kind of way.

Speaker 1 (09:09):
What literally is he doing right now in New York
that's going to change your mind one way? I mean,
I'm assuming the decisions made. Well, we've had we've had
preliminary conversations. He the Middle East is pretty dynamic situation,
and it's quite right that he's not that dynamic. Well, well,
they both hate each other and the blowing each other
up and killing each.

Speaker 2 (09:26):
Other they are. And that's why that's why I say
that main event has actually got to be dealing with
that stuff rather than recognitions. An interesting issue in itself.
Will work our way through that obviously, But in fairness,
you know, it's right that he actually is is taking time,
is considering it, he's listening to other prospective So you're
telling me.

Speaker 1 (09:42):
Right here right now in New York on a Sunday
afternoon as it is then now he's still considering when
that decision has not Literally, we.

Speaker 2 (09:51):
Have a preliminary decision which we will look to confirm
and also continue to monitor developments through the course of
this week. We'll make a final cabinet decision towards the
end of the week, and then he'll give his address
at the UN General.

Speaker 1 (10:03):
I'm almost out of time. You won't know about this,
but just to take away and think about it, the
NB looked at peach dumping peaches his last week. Chinese
were dumping peaches in this country. They found that to
be true, and they somehow worked out that it didn't
affect the domestic market. How can you dump something and
it doesn't affect the market.

Speaker 2 (10:22):
That's that's I want to look into that because we
can you do that because the next next thing I'm
knowing is what is cutting peach trees? They're not buying
local peach exactly. And so yeah, we've been very aggressive
on wto claims. You might have seen the one we
had with Canada under the CPTPP in particular, but where
we have those claims, we we we're zero we are
free traders and say we've got it.

Speaker 1 (10:43):
But on the surface, how can MB look at something,
see dumping and think, well, it doesn't affect anyone, Well
it seems weird.

Speaker 2 (10:49):
Yes, it does seem and that's an issue and a
decision for Todd Mclair's a Minister of Trade who prosecutes
those WTO cases. When we see evidence of dumping.

Speaker 1 (10:56):
I'll be asking about this next week.

Speaker 2 (10:58):
Okay, what else are you going to be asking about?
Words to that, nice Christopher Luxen. For more from the
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