Tom Rutherford - The Week That Was

29 May 2026

Budget 2026 demonstrates the economic and fiscal discipline needed to steer New Zealand through an uncertain global environment and into a brighter, more secure future. Against a challenging global backdrop, we are staying the course on responsible fiscal repair while supporting economic growth to create jobs and lift wages.

Budget forecasts show New Zealand returning to surplus a year earlier than expected, $6 billion less borrowing than previously forecast and economic growth averaging 2.7 per cent despite international volatility and unrest. The growing economy is expected to create 220,000 more jobs over the next four years, with wages outstripping inflation over that period. This means more opportunities for Kiwis, and greater choices about what to do with your hard-earned money.

The global fuel crisis has affected most households and businesses. While the challenges remain, the positive outlook shows the Government’s economic programme is helping ensure New Zealand is well-positioned for the future. At a time when many Kiwis are making careful choices with their budgets, the Government must do the same. New Zealand cannot tax, borrow and spend its way out of every challenge.

We have made $50 billion of savings across three Budgets, and this year have redirected investment to new roads to help boost economic growth, to Police to crack down on crime, to schools so our kids are taught the basics brilliantly, and to the health system to ensure people get care when they need it.

This financial discipline translates into real economic security, with Budget 2026 rebuilding New Zealand’s financial buffers. Without a responsible path back to surplus, Kiwis would face the real risk of higher debt, higher interest rates and higher taxes.

The Budget: supports the Government’s prudent response to the global fuel crisis, with temporary targeted support and provision for further action if needed.

Since the outset of the conflict, our approach has been to stay ahead of risks to New Zealand’s fuel supply, keep the economy moving, and support those most affected by higher fuel prices with temporary, targeted and timely measures.

  • Additional funding for Fire and Emergency, Corrections, Police, Customs and Education to maintain frontline operational activities in the face of sustained fuel price increases
  • The $50 a week increase to the In-Work Tax Credit for up to a year to help working families with increased fuel costs
  • Funding of $150 million for additional strategic fuel reserves to firm up New Zealand’s fuel resilience
  • The temporary increase in mileage rates for support workers and people travelling for specialist treatment
  • Support for public transport authorities to help manage fuel costs pressures and maintain services; and 
  • A $450 million reserve for additional temporary targeted support if conditions worsen.

The situation in the Middle East remains uncertain, so it is prudent to be ready should fuel prices rise further and add more pressure to households and businesses.

 

Government contributions to the New Zealand Superannuation Fund are forecast to total $3.1 billion over the next four years, $2.2 billion more than expected at the Half Year Update in December. 

The Government’s Super Fund contributions are set by a legislated formula and rise from $562 million next financial year to just over $1 billion in 2029/30.

Updated population projections, new inflation forecasts and other changes to formula inputs mean we are continuing to make contributions over the next few years, rather than drawing down from the Fund as expected in last year’s Budget.

In the meantime, Budget forecasts show the cost of New Zealand Superannuation growing rapidly as the population ages, from $24.7 billion in the current financial year to $31.2 billion in 2029/30,” Nicola Willis says.

 

A $7 billion capital investment in Budget 2026 will strengthen the resilience of New Zealand’s infrastructure and support thousands of jobs, Finance Minister Nicola Willis and Infrastructure Minister Chris Bishop say. 

Thanks to the Government’s careful management of the country’s finances, new funding is able to be invested in hospitals, schools, roads, rail, defence capability, social housing and local infrastructure,” Nicola Willis says.

 

New Zealand’s seniors will soon be able to use their SuperGold cards as an official form of identification, making it easier for them to access essential services.

Budget 2026 is funding the modernisation of the SuperGold Card to give users the free option to upgrade to a version which they can use as an accepted form of primary identification.

More than 900,000 New Zealanders are aged 65 and over and many do not have legal ID such as a driver licence or passport, which can limit their ability to access things like banking and legal services.”

The upgraded card will include a photograph and enhanced security features, and meet standards required by banks and other service providers. It will be available in both physical and digital versions.

Having the photographic ID will be optional and the SuperGold Card will remain free of charge to anyone over 65. 

This will be free, because older New Zealanders should not have to pay just to prove who they are.

 

 Stalkers will face the full force of the law now that stalking has become a criminal offence punishable by up to five years in prison. Our government is sending a very clear message - this insidious behaviour has to stop. If it continues, stalkers will face the consequences.

For years we’ve heard accounts by Kiwi women that have been shocking. Stalking causes serious emotional, psychological and economic harm, yet until now, stalkers have got away without facing serious legal consequences. This is not right. Stalking and harassment is vicious, sinister and can be deadly.

From day one our government has been committed to ensuring there are real consequences for crime and that victims are at the heart of the justice system. It underpins all our work to fix the basics in law and order and build a future where all New Zealanders can feel safe in their communities.

 

They have the knowledge and skills they need in literacy and maths that sets them up for the brightest possible future. That’s what National’s plan for education is all about – teaching the basics brilliantly. 

The latest study shows early signs that our changes are working. Writing results for Year 6 students are up 5 per cent, and math results are up 6 per cent, helping to turn around New Zealand’s long‑term drop in achievement between Years 4 and 8. 

We are ambitious for the next generation. That’s why, through Budget 2026, we’re investing even more into literacy and maths. 

Schools will get more practical classroom support, through Maths Hubs, hands-on maths equipment, writing workbooks, and a digital writing tool, alongside more maths intervention support teachers and maths checks to help identify students who need extra help.  

We’re also replacing NCEA with a credible, internationally benchmarked qualification – the New Zealand Certificate of Education at Year 12, and the New Zealand Advanced Certificate of Education at Year 13. Too often, students have been able to gain piecemeal credits without developing the knowledge and skills they need to succeed in further study, training, or employment. We’re fixing that.  

These reforms build on the positive changes already underway, including mandating an hour a day of reading, writing, and maths, banning cell phones in schools, rolling out structured literacy, increasing learning support, and investing in school infrastructure so kids can learn in warm, dry classrooms.  

We’re putting ambition and achievement back at the heart of our education, so no matter a child’s circumstances or where they attend school in New Zealand, every child is set up for success.   

We are fixing the basics and building the future.

 

The Government has announced a new Gas Transition Loan Guarantee Scheme as part of Budget 2026.

It will make up to $1.2 billion in bank loans available to help businesses reduce or eliminate their reliance on gas. The Crown will guarantee 80% of each supported loan, which means banks can pass on lower interest rates to make the switch more affordable. $48 million has been set aside to cover any potential losses.

This practical support is aimed at firms that use gas for things like water heating, interior heating, or greenhouse operations. To be eligible, businesses need to use at least 1,000 GJ of gas per year and must achieve genuine gas savings of at least 15% while maintaining or increasing production (for comparison, an average household with gas for cooking and heating uses about 25 GJ a year, while New Zealand’s 14 largest gas users use more than 300,000 GJ each per year.)

By helping businesses transition to alternatives such as electricity or bioenergy, we can protect jobs, lower energy costs, and preserve our limited domestic gas supplies for those who have no viable alternative.

A sensible, targeted step that supports both economic growth and a more secure energy future

Kiwi households and businesses get a fair deal from their power companies.

 

We had two great catch ups - one with members for a morning tea and the other at Beetham Lifestyle Village to a great crowd with a particular interest in the amendments to the Retirement Villages Act.

We are spreading the word that fixing the basics and building the future is in the best interests of all NZers!

 

A major redevelopment of Tauranga Hospital under Budget 2026 will support shorter waits, faster treatment, and better care for patients across the Bay of Plenty. New Zealand’s economy is strengthening despite global challenges, and that means we can keep investing in the frontline services people rely on.

Budget 2026 is delivering the next step towards a modern Tauranga Hospital, so families across our region can feel confident they’ll get the care they need.This is about improving access to timely, high-quality healthcare for a fast-growing community. By getting the books in order, cutting waste and keeping taxes low, we’re able to keep investing in hospitals and services that matter to people.”

The investment will make a real difference for patients and families across the Bay of Plenty.This is about giving people confidence in their local hospital, both now and into the future.

We’re focused on improving care sooner, so patients and their families start to see the benefits as early as possible.This sits alongside a wider plan to grow the economy, lift wages and create jobs, while continuing to invest in the services Kiwis rely on.

Budget 2026 is about fixing the basics and building a stronger future for the Bay of Plenty – and this is a positive step in that direction.

This is an important step, and there will be more details to share soon.


As you now know, National is giving ambulances a boost including for St John in the Bay of Plenty. Most importantly that means more crews on the road. They're also going to have upgraded technology to make doing their job easier.

Pictured is Mat, Operations Manager for St John Western Bay of Plenty.

Ambulances are operated by incredible people going above and beyond night and day and I'm really glad we could make this happen.

 

The next phase of works on State Highway 29 is now underway, with piling for the new bridge supports beginning.

Four piles, each up to 50 metres deep, are currently being drilled on the eastern side of the river. Once complete, they’ll be filled with concrete to form a solid foundation. They will then move across to the western side to install two more sets of supports. This is the first stage of the Tauriko West – Road of National Significance. Replacing the bridge and realigning SH29 will make this vital route safer, more reliable, and much better for freight movement.

Great to see this key piece of infrastructure moving forward for the Bay of Plenty

 

Refereeing local rugby between Arataki and Katikati.

It was an awesome game played in really good spirits, with Katikati coming out on top.

 

Fantastic to celebrate the incredible athletes, coaches and volunteers from across New Zealand who make disability sport happen.

The Awards Evening is part of the Healthvision Festival of Disability Sport, which brings together physically disabled athletes from across the country for competition, have-a-go sessions and community connection.

 

After a local mum raised concerns about broken glass and debris building up behind the barriers near Te Manawa o Pāpāmoa School, I contacted Tauranga City Council.

Council has now confirmed the area will be cleaned up with the work scheduled to be completed by 29 May. This is important for the safety of our kids, dogs, and everyone who walks or cycles in the area. Broken glass has no place near a school or footpath.

A big thank you to the local who brought this issue to my attention and to the Council team for getting it sorted. If you see issues like this in our community, please don’t hesitate to let me know. I’m here to help get them fixed.

 

 

On Saturday 20 June at 11am on the beach at Leisure Island, Mount Maunganui, the community is coming together to form a giant human chain in support of Maria and every New Zealander affected by cancer.

Everyone is welcome. Come along, wear bright colours and bring good energy. There’ll be music, drone footage capturing the human chain from above, and the Matcha Truck will be there with proceeds going to Maria’s fundraiser.



  • 22nd June
  • 20th July
  • 17th Aug
  • 21st September
  • 19th October





New Zealand turns down federation with Australia

30 May 1901

Cartoon about New Zealand joining the Australian federation (Alexander Turnbull Library, J-040-008)

A 10-man Royal Commission reported unanimously that New Zealand should not become a state of the new Commonwealth of Australia.

Although New Zealand had participated in Australian colonial conferences since the 1860s, federation only became a serious prospect following a decision in 1899 to unite Australia’s six colonies.

Premier Richard Seddon preferred to be the leader of an independent country rather than an Australian state. He set up the Royal Commission in 1900 to buy time and get a sense of public opinion. While most submissions opposed union with Australia, many farmers were in favour, fearing new trade barriers to their produce.

The prevailing view was that New Zealanders were of superior stock to their counterparts across the Tasman. New Zealand’s trade was mostly with the United Kingdom; Australians were economic rivals rather than partners. Although New Zealand and Australia eventually signed a Free Trade Agreement in 1965, and the two economies have become closely integrated, political union is no closer today than it was in 1901.
 

Budget 2026 is a responsible Budget that boosts funding for essential services and invests in the infrastructure New Zealand needs for the future without breaking the bank, Finance Minister Nicola Willis says.

 

The earlier return to surplus forecast in this year’s Budget shows the benefits of disciplined economic management and a government taking its responsibilities seriously, Finance Minister Nicola Willis says.

 

Budget 2026 introduces a new prudential levy on banks, non‑bank deposit takers, insurers, and other financial market participants to help cover the costs of services provided by the Reserve Bank, Finance Minister Nicola Willis says.

 

Budget 2026 introduces a new prudential levy on banks, non‑bank deposit takers, insurers, and other financial market participants to help cover the costs of services provided by the Reserve Bank, Finance Minister Nicola Willis says.

 

Budget 2026 boosts New Zealand’s aid programme in our region and safeguards our offshore diplomatic network at a time of acute global challenge, Foreign Minister Winston Peters says.

 

A $7 billion capital investment in Budget 2026 will strengthen the resilience of New Zealand’s infrastructure and support thousands of jobs, Finance Minister Nicola Willis and Infrastructure Minister Chris Bishop say. 

 

The Government is fixing the basics and building the future of New Zealand’s healthcare system, focused on delivering for patients and supported by record investment in health, Health Minister Simeon Brown says.

 

Major hospital upgrades at Whangārei, Tauranga, Hawke’s Bay, and Palmerston North, alongside investment in other facilities across New Zealand, will strengthen health infrastructure and help deliver better performance on key health targets for patients, Health Minister Simeon Brown says.

 

More than 200,000 additional New Zealanders will gain access to life-saving bowel cancer screening as the age of eligibility for free bowel screening is lowered further, Health Minister Simeon Brown says.

 

Cyber security across New Zealand’s health system will be significantly strengthened to better protect sensitive patient information and ensure services remain safe and reliable, Health Minister Simeon Brown says.

 

Budget 2026 invests around $2.1 billion to continue building the foundations of a world-leading education system that sets Kiwi kids up for success, Education Minister Erica Stanford says.

 

Associate Education Minister David Seymour has today announced that financial relief for early childhood education (ECE) services will come in July 2026, instead of January 2027.

 

Budget 2026 will double trade training opportunities for secondary school students over the next few years, Education Minister Erica Stanford, Regional Development Minister Shane Jones and Tertiary Education Minister Penny Simmonds say.

 

Budget 2026 builds on the Government's back-to-basics approach to law and order by investing a total of $1.3 billion in policing, corrections and other law and order agencies, Justice Minister Paul Goldsmith and Police Minister Mark Mitchell say.

 

Associate Justice Minister Nicole McKee has welcomed Budget 2026 funding of $44.9 million to implement the new Arms Act and establish Firearms Safety and Education New Zealand, the new independent firearms regulator.

 

Budget 2026’s welfare package incentivises getting Kiwis into work and gaining greater independence, while supporting those in most need, Social Development and Employment Minister Louise Upston says.

 

The Government is improving tax rules for the charitable and not-for-profit sector to ensure fairness and resilience, Revenue Minister Simon Watts and Community and Voluntary Sector Minister Louise Upston say.

 

Budget 2026 introduces tax changes to strengthen New Zealand’s tax system, encourage investment and make it easier to comply with, Revenue Minister Simon Watts says.

 

The extension of the Waikato Expressway will make travel safer, faster and more reliable, Transport Minister Chris Bishop says.

Budget 2026 invests $1.773 billion in funding for the Cambridge to Piarere Road of National Significance, extending the Waikato Expressway which is one of New Zealand’s most strategically important transport corridors.

 

New Zealanders will benefit from better information about natural hazard risks, and faster and more consistent planning decisions under major new investment in the Government’s planning reforms, RMA Reform Minister Chris Bishop, Climate Change Minister Simon Watts and Parliamentary Under-Secretary Simon Court say.

 

The Government has committed up to $1.075 billion to KiwiRail’s planned network investments between 2027-2030, alongside $106.9 million to continue critical metropolitan rail infrastructure renewals, Rail Minister Winston Peters and Transport Minister Chris Bishop announced.

 

The Government is making a major investment to back councils that support housing growth, Deputy Prime Minister David Seymour, Housing and Infrastructure Minister Chris Bishop, and Local Government Minister Simon Watts say.

 

Thousands more New Zealanders will get access to warm, dry, secure homes through Budget 2026, Housing Minister Chris Bishop says.

The Budget invests a further $69.2 million into the Flexible Fund to deliver between 1800 and 2250 additional social homes over three years starting from 2028/29.

 

Budget 2026 funds more frontline teams to respond to migrant exploitation and immigration non-compliance 

 

The Government is investing in te reo Māori by strengthening Māori broadcasting and supporting Māori cultural and creative capability, Māori Development Minister Tama Potaka says.

 

 

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