The Country 28/05/25: Christopher Luxon talks to Jamie Mackay

The Prime Minister fronts up on The Country, after standing Mike Hosking up on Monday. We discuss Jim Bolger’s comments about Winston and Seymour, the Investment Tax Boost, National Super and Pāmu’s carbon farming.

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Episode Transcript

Speaker 1 (00:00):
Wednesdays on the Country. The Prime Minister kicks off the
show today. He's got off his death bed to chat
to us. Wasn't fit enough to talk to the Hosk
on Monday. He's still sulking about that. Prime Minister Christopher Luxon.

Speaker 2 (00:13):
Well, you can't talking to Jamie McKie, right. I mean,
it's absolutely fantastic, So no, good to be with you.
Mate's selling much better. I just had a bit of
a rough Sunday and Monday, so that we're back in
the said all which is good. So I've been out
selling the budget yesterday and today, so I think there's
been good reaction to it or which is seen funk.

Speaker 1 (00:29):
I'm going to come back to the budget, especially some
of the talk around your investment allowance or investment boost.
Have you read in the Herald today an interesting story
about Jim Bolger, who's about to turn ninety, and I'll
tell you what he said. Luxeon should tell Seymour to
shut up. He said, Winston's doing a good job and

(00:49):
he wants the age of National super to go to seventy.

Speaker 2 (00:54):
Well, listen, I wish itn't my happy birthday. I was
talking to Bill Birch last week, and I know he's
coming down to celebrate your birthday as well. But look,
I think our coalition government, you know, we're halfway through
the term. I think we've worked incredibly well. It's the
first time you've had a three party coalition. We're very
united on the core stuff. Obviously there's differences in different
party policies, but you know, the vast majority of what

(01:15):
we're focused on is about growth, growth, growth, again, the
country moving and focusing on what Key's interested in. So
I think, you know, I enjoy working with both.

Speaker 1 (01:22):
You know, he's saying that you should tell Seymour to
shut up over Mari issues. Mainly he says Winston's doing
a good job. Do you need to tell Winston to
shut up when it comes to the age of eligibility
for national super because this is becoming a real national
debate discussion argument at the moment.

Speaker 2 (01:41):
Yeah. Look, I mean there's some things we're doing through
the budget around you know, resetting Key. We say a
contribution rates, which I think is really good. That'll be
build bigger retirement savings. But I do think, you know,
we do have differences. You know, we've had a strong,
long standing policy. We think we should list the age
of retirement from sixty five to sixty seven. The reason's
pretty pull. Every ten years tow Zealanders live another year

(02:02):
and a bit of life expectancy, which is great. And
you know, as many people would you know out there
working in the workforce at sixty seven plus so and
want to continue to work so and other countries have
already moved to a pathway to sixty seven from sixty five, so,
you know, but equally, we don't have political consensus on it.
Labour's dead set against it. New Zealand first is dead
set against it. So I suspect we'll go to the

(02:24):
election in twenty six with different party policies on that point.
And then you know, in our MMP system we form
coalition governments based off the result that people give us
on election night and then we have to make it work.
And that means in this case, we don't have agreement
on that issue and we're unable to progress it. But
I think, you know, ultimately we have to ask the
question because the cost of superannuation and the number of

(02:44):
working New Zealander is supporting those that are retired is
changing over time. But you know, we have a National
Party policy on that which as we think we should
find a.

Speaker 1 (02:51):
P Absolutely the population bell curve is working against you there.
Look the wash up from the budget. I think when
you turn up at field Days you'll be greater with
glee from some of the exhibitors there, because we're already
hearing anecdotally there's a rush on utes, there's a rush
on tractors. So I think field Days is going to
be very positive off the back of your investment tax boost.

Speaker 2 (03:15):
This is something I've wanted to do for some time,
even before I got to politics, because you know, when
you look at what actually accelerates growth, it's the adoption
of more capital, more equipment, more technology, and so this
is an incentive for people to say, look, I was
thinking of buying that new tractor. In fact, I was
talking to a farmer in South Canterbury who was actually
just digested the policy and was actually planning this week

(03:37):
to go off and actually sort of buy a header
and attractor at the same time. They didn't fully do
the tractor, but thought based off this moving, you know,
you could write off twenty percent of the asset in
the first year that was actually going to move. The
cash flow analysis to make it actually a positive thing
to do, so, you know, and it's with manufacturers yesterday.
You know, in small medium enterprise, a couple of hundred
employees are producing electrical stuff and you know, there's huge

(04:00):
opportunity to buy the equipment that's five times more productives
and the equipment that they've got in their factory at
the moment. So all of that's designed to improve the
productivity of New Zealand, to lift our living standards and
our income. So yeah, I'm really excited about that's gone
down a tree.

Speaker 1 (04:13):
A final question for you. We had Mark Leslie, chief
executive of Palmu, on the show yesterday. He was pretty
unconvincing in defending Palmu's actions when it comes to carbon farming.
They're planting a lot of trees. Mark would argue they're
planting the right tree in the right place. But when
you see a very high functioning so I'm told pastoral

(04:35):
livestock station, Munga mingy station and a rapaou are going
almost all into trees. This is flying in the face
of what you're trying to do, isn't it.

Speaker 2 (04:44):
Well, As you know, we've campaigned limits on farm conversions
and we have legislation in place this year and then
we backdated to the fourth of December last year. So
particularly on a bean on LC one to six farm landers,
you know. So, yeah, as I understand, at Palm, we've
got quite a lot of Class six or seven land.
I thought from memory when I last looked at it

(05:05):
was maybe fifteen percent of their land was in Class
six and seven, and so forestry on those for those
purposes sort of you can sort of buy. Obviously, Palmer
has sort of both researching commercial goals, but we expect
it to utilize its land for the highest and best
use and the Palmes irons and wouldn't be supporting carbon

(05:25):
only farming, as in locking it up and leaving it.
The revenue that they've made on carbon should be used
for justal investments and technologies and fencing requirements and all
sorts of.

Speaker 1 (05:34):
Other and that's all fine and dandy. But some of
that Class seven land they're planting in pine trees. I
put it to you, it may be uneconomic to harvest
that in twenty or thirty years time.

Speaker 2 (05:46):
Yeah, well, I mean, they shouldn't be just supporting carbon
only farming, which they're locking up and leaving it. They
actually know.

Speaker 1 (05:53):
They're not doing that. They're saying they're not doing that,
but I'm just putting it to you. I don't think
they're setting a good example from the government's point of view.

Speaker 2 (06:02):
Yeah, well, I mean our policy is pretty clear and
we would expect them ultimately to follow that policy too, obviously.

Speaker 1 (06:07):
Prime Minister Chris lux and always good to catch up
with you on the country on a Wednesday.

Speaker 2 (06:12):
Likewise, Jamie, you gave a great week.