The government is setting up a new foreign investment agency aimed at boosting productivity and innovation.
Invest New Zealand will be set up as part of New Zealand Trade and Enterprise - which will itself be "refocused" on supporting New Zealand exports - before being split off as its own Autonomous Crown Entity.
Prime Minister Christopher Luxon announced the changes in his state of the nation speech in Auckland, saying it would lay the path to prosperity.
Science, Innovation and Technology Minister Judith Collins has also announced major reforms of the science sector, merging the current seven Crown Research Institutes into three and setting up a fourth focused on "advanced technology".
Invest New Zealand would be modelled on Irish and Singaporean best practice, seeking investment into banking and fintech, manufacturing, private sector growth, and critical infrastructure including roading and energy.
It would seek increased investment into research and development by multinational companies, and encourage "skilled professionals to enhance domestic capabilities and global connections".
It will be led by Trade and Investment Minister Todd McClay.
"I'm here today to talk about the economy - and almost nothing else," Luxon said. "It's not that public safety isn't important ... and it's not that health or education aren't important ... but as far as I'm concerned, going for growth is without a doubt priority number one.
Christopher Luxon delivers his state of the nation address. Photo: RNZ / Marika Khabazi
"Invest New Zealand will be established as the government's one-stop-shop for foreign direct investment ... streamlining the investment process and providing tailored support to foreign investors."
He said the government had delivered on the promised tax cuts and hailed falling interest rates as savings for those with a mortgage, but there was still a long way to go.
"I am confident we are now on the road to recovery, but recovery isn't enough. We have to go for growth."
He highlighted Port of Tauranga's plans to expand - saying they had been "stuck for years, just fighting for permission to grow" - and the council event rules constraining Eden Park's ability to host large concerts, as examples of where a more permissive approach was needed.
"We need a lot less no and a lot more yes," he said.
He also highlighted competition as a concern, pointing to banking, supermarkets, construction and energy as key industries facing a lack of it.
The Resource Management Act reforms would also be key to the government's push for growth, as well as fixing "our broken health and safety rules".
Mining would also need to play a "much bigger role in the New Zealand economy".
"It's easy in politics to say you want a sovereign wealth fund like Norway, or much higher incomes like Australia - but it's much harder to say you want the oil and mining that pays for it."
As signalled by the new Economic Growth Minister Nicola Willis, tourism would also have a "massive role to play in our growth story".
"We have a relentless network of tourism operators - each of them utterly driven to compete for our national brand and their local businesses."
Making it easier for farmers and focusing on commercialisation of scientific breakthroughs would also be important.
"Right now, scientists see too few of the proceeds of their own research. Too often, any resulting intellectual property is swallowed up by universities and effectively shelved with any potential commercialisation often an afterthought.
"I want us to commercialise our brilliant ideas, so that our science system makes us all wealthier. Because we are going for growth."
This would include the establishment of an advisory council to set out research priorities and target funding.
His speech concluded with a message of optimism for New Zealand.
"... that New Zealand is a country with unlimited potential, a country with a promise: that if you work hard - wherever you come from and wherever you're going - you can get ahead.
"I want our kids to grow up in a country where it is totally normal for them to go and work in a company that puts rockets into space, or a cutting edge health science or agri-tech company. Or that they can create those companies for themselves."
"We're not there right now - but we so can be. We can take on the world, and we can win. Hope is on the horizon and our potential is within our grasp."
From left, Roger McClay, Christopher Luxon and Judith Collins at the announcement. Photo: RNZ / Marika Khabazi
Attracting foreign funds the goal
McClay said the new agency would offer an exciting opportunity to find international investment to grow the economy, drive innovation, create new businesses, and help the government deliver core infrastructure.
"We compete on the world stage very well when it comes to trade but we don't do as well as we need to when it comes to direct investment," he said.
"Foreign direct investment stock sits at about 38 percent of GDP, compared to Ireland at 250 percent of their GDP. Last year our FTI grew by about 5 percent compared to Singapore which grew by about 51 percent."
He said investors overseas had told him they found it harder than they would like to invest in New Zealand.
"The skillset you need to help New Zealanders export more is very different than the skillset you need to bring investment into New Zealand.
"We should be measured on our success of the deals that are done, not just the brochures that are produced and sent out to the rest of the world."
Luxon said he had travelled to Ireland when in opposition with the purpose of understanding that country's approach to attracting investment, export growth and its science and technology sector.
He said the coalition had been working on a new Overseas Investment bill in the latter half of last year and would have more to say about that soon.
"All of us are very much in synch about growing New Zealand and attracting more investment into the country."
The changes continue the trend of the government's focus on growth in the research sector, with the newly created PROs expected to respond to government priorities and focus on economic outcomes in addition to public good services.
New legislation to support the changes is expected to be passed later this year and next, while the government has indicated further moves will be made in the coming months.
