Economic Development

This page details the election promises related to economic development including:

• industry and trade development;
• infrastructure;
• innovation, science and technology;
• energy;
• housing development;
• regional support;
• subsidies;
• transport

Economic development

Industry, trade development & competition

NZ First have the largest commitment by far: a one-off $26.7 billion buyback of Bank of New Zealand, calculated by applying the NAB profit multiplier (16.19x) to BNZ's latest annual profit plus a 10% premium. NZ First have committed $273 million to separate the retail and generation arms of the electricity gentailers.

Labour have committed $2.8 billion, almost entirely made up of foregoing dividends the Crown would otherwise receive from the Future Fund, plus $57 million to expand the apprenticeship boost. Their pledge to "replace" the Investment Boost tax incentive has been costed as broadly cost-neutral.

The Opportunities Party have pledged $316 million, including a $136 million tax deduction for impact and community investment and $80 million to expand FinCap support to small businesses. The Opportunities Party have committed $100 million, including an $80 million uplift for the Commerce Commission and $20 million for a Consumer Advocacy Fund.

National's only commitment here is $1.4 million for 23 new trade missions over the term.

The Green's have proposed establishing "KiwiMart" by forcing Foodstuffs and Woolworths to divest 120 stores and some warehouses. Using MBIE figures provided to Cabinet in 2023, we have estimated the Greens' plans at $4.7 billion, or $2,259 per household.

Infrastructure
NZ First have committed $13.3 billion, almost all of it a four-year share of their flagship $100 billion 30-year infrastructure fund.

The Opportunities Party have committed $16.1 billion, dominated by an estimated $15.9 billion cost of refunding GST collected on construction activity back to local councils, plus $108 million to boost the infrastructure agency Te Waihanga. TOP's proposed $60 billion infrastructure fund has not been costed, as it would be capital rather than operating expenditure.

Energy
The Green Party has the largest energy programme at $3.1 billion, including $980.6 million for "Kiwipower", $969.8 million to expand Warmer Kiwi Homes, $460 million for solar on public housing stock, $428.7 million in zero-interest solar loans and $200 million for community-owned energy.

The Opportunities Party have committed $484 million, including $400 million for small-scale generation projects.

NZ First have proposed a $1 billion subsurface development survey.

National have committed $7 million to a Home Energy Fund of low-interest solar loans.

Transport
The Green Party have by far the largest transport commitment, at $18.8 billion. Of this, $17.2 billion is earmarked for nationwide rapid and light rail, with the remainder covering $1.2 billion for comprehensive bus lanes and $337 million in EV subsidies.

Labour have committed to cap public transport fares, costing $260 million over four years. We dispute this figure, estimating a cost close to $648 million. 

The Opportunities Party have committed $500 million to electrify the bus fleet.

National have committed $275 million, including $200 million of National Land Transport Fund money towards a Queenstown gondola congestion fix, $50 million for a Rolleston intermodal freight hub, and $25 million to four-lane the Queenstown road.

Innovation, science and technology
The Opportunities Party is the only party with a substantial programme here, totalling $4.3 billion — including a $2.4 billion tax credit for technology adoption, $700 million to expand contestable research funds, $500 million to restore the core science budget, $400 million for early- and mid-career researchers, a $120 million widened R&D tax credit, $106 million to double incubator funding and $80 million for polytechnic Public Research Organisation (PRO) bulk funding.

Labour have committed $36 million to an AI fund for SMEs.

Housing development
The Green Party have committed $9.4 billion to build tens of thousands of new public homes.

The Opportunities Party have committed $320 million to expand the Warm Homes programme.

Regional support
The Green Party have committed $4.8 billion to regional and iwi development, including a $2.4 billion Te Rangatiratanga Trust, a $2 billion "intergenerational fund" and $400 million for a Te Rākau restoration fund. New Zealand First have committed $15 million towards restoring Christchurch Cathedral.

Subsidies
The Opportunities Party have committed $1.3 billion to make all public transport free.

Labour have committed $160 million to repurpose the LNG fund into a "SolarSaver" scheme.

Note: This does not include $62 billion in capex for infrastructure pledged by TOP that remains unspecified and without a timeline. ACT have not costed any economic development policies this election. Their transport policy aims to reallocate funding from cultural spending to core transport investment, but this is neither a cost increase or decrease.

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