Labour will create an independently governed New Zealand Future Fund to invest in infrastructure and innovative Kiwi businesses.
- Purpose: invest in infrastructure and innovative New Zealand businesses to create secure, well-paid jobs
- Seeded with existing Crown-owned assets (commercial and public good purpose) plus an initial capital contribution
- Sits alongside and separate from the NZ Super Fund
- Independently governed by the Guardians of the Super Fund; the Minister of Finance is sole shareholder with no power to direct individual investments
- Seeded assets are protected in law from sale; other assets need explicit Ministerial approval to sell
- Status: the first step in a wider Labour economic plan
Why a Future Fund, and why now?
Right now, record numbers of Kiwis are leaving. National has no plan to grow the economy or create jobs. Their only answer is to sell off assets and open the door wider to foreign investors, giving away our future instead of building it.
New Zealand has the talent and ideas. What's missing is the backing. Too often, Kiwi businesses are forced overseas or bought out by foreign investors – taking jobs, opportunities, and wealth away with them.
There are 40,000 fewer jobs now than there were when Christopher Luxon became Prime Minister. Every day, more than 200 New Zealanders leave the country in search of opportunities they should find here. New Zealand's economy shrank by nearly a full percent last quarter.
What other countries have done
Other countries have built wealth by backing their own potential.
Singapore's Temasek began modestly in 1974 with S$354 million - today it is worth more than S$434 billion.
Australia's superannuation has grown to A$4.2 trillion, helping drive investment in its people and industries.
New Zealand's own Super Fund has grown to $85 billion and delivered strong returns, but only 11 percent of it is invested here at home. That's part of the problem: too little of our own capital backs our own ideas.
How the Future Fund will work
The New Zealand Future Fund will sit alongside, and separate from, the New Zealand Super Fund.
It will be established with a foundation of existing government assets and an initial capital contribution, and will be independently governed by the Guardians of the Super Fund, with the Minister of Finance as sole shareholder.
The Future Fund will be seeded with a small number of Crown-owned assets that have both a commercial and public good purpose, providing a steady revenue stream through dividends and an asset base to leverage. Those seeded assets will be protected in law - they cannot be sold and will remain in public ownership for generations to come. Other assets will require explicit Ministerial approval before being sold.
The Future Fund will operate independently, guided by legislation and a public policy statement. The Minister of Finance will set broad objectives through a letter of expectation, but will have no power to direct individual investments. The Fund will have the authority to invest and borrow.
Returns will be both financial and social - stronger communities, lower costs, more resilient industries, and opportunities that keep talent and ideas in New Zealand. That might include backing community renewable energy or high-tech start-ups.
Three guiding principles
- Wealth creation with purpose: directing investment to solving real problems: affordable healthcare, warm homes, higher productivity, and a zero-carbon economy.
- Partnership: working alongside business, unions, and communities to shape and create new markets, providing clarity, direction, and confidence to invest for the long term.
- Investing in ourselves: mobilising New Zealand's own savings, skills and innovation to create jobs and opportunity here at home.
Labour's first-term focus areas
- Make and keep more wealth in New Zealand - invest in productive industries, and create a tax system that rewards work and productive investment over speculation.
- Clean, affordable energy - accelerate new generation and storage and upgrade the grid, so power is cheaper and more reliable.
- Skills and tech adoption - turbo-charge apprenticeships and mid-career upskilling, and help small firms adopt proven technology.
- Faster access to quality, affordable public services - building technological capacity in health, education and local services.
- Modern, resilient infrastructure that connects regions and unlocks growth.
What will the Future Fund invest in?
Infrastructure and innovative Kiwi businesses, plus assets and projects with both a commercial and public good purpose, such as community renewable energy or high-tech start-ups.
How is the Future Fund different from the NZ Super Fund?
It sits alongside and separate from the Super Fund, with its own seeded Crown assets and governance, though it shares the same independent governing body - the Guardians of the Super Fund.
Who controls how the money is invested?
The Guardians of the Super Fund govern it independently. The Minister of Finance is the sole shareholder and sets broad objectives through a letter of expectation, but has no power to direct individual investments.
Can the Future Fund's assets be sold off?
No - assets the Fund is seeded with are protected in law and cannot be sold. Any other assets the Fund holds would require explicit Ministerial approval before being sold.
Is this Labour's full economic plan?
No. Labour says this is the first step, with the rest of its economic plan, covering energy, skills, public services and infrastructure, building on it.
This is how we turn aspiration into action and make New Zealand a place where our kids want to stay and build their lives.
This is how we will build a future made in New Zealand.
Download the full policy document.
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