Prime Minister Christopher Luxon has promised everything his government does this year will focus on creating growth.  

That is great. But what might it mean in practical terms? 

There are important big-ticket items the government must address, among them the fiscal deficit, the affordability of superannuation, and the broader welfare state. 

However, there are also ideas which could be implemented quickly and yield results fast. 

Start with a glaring problem: when businesses invest in new machinery to boost productivity, our tax system gets in their way.  

Businesses need to be able to count depreciation against their revenues. But the Tax Foundation says that New Zealand has the second-worst provisions in the OECD. This discourages investment and needs to be fixed. 

Next, the government must tackle the truly mad stuff: infrastructure developers spend $1.29 billion annually navigating consent processes. For small projects, paperwork can account for 16% of total costs. 

We used to be known for our “can-do” spirit. Our ranking for regulatory burden has dropped from 2nd to 20th since 1998. Something has gone badly wrong.  

The government could fix this by setting a bold overall target: first measure and then slash all business compliance costs by 25% by 2030.  

In the early 2000s, the Netherlands pioneered this systematic approach to measuring and cutting administrative burdens, reducing them by 25% in just four years. Their model has since been copied widely. Why? Because it works. New Zealand should copy it too. 

Next, speed up building approvals. Allow private certifiers to approve straightforward projects. Inject competition into the approvals industry.  

Speaking of approvals: implement the ‘Rule of Two’ for medicines. If a drug has already been approved by two trusted regulators overseas, approve it here automatically.  

But hang on – this is already in the coalition agreement! It should have been one of the easiest reforms to implement. The policy is ready. The evidence is clear. The agreement is signed. Just do it! 

Then introduce sunset clauses for all new regulations. Make them expire after five years unless explicitly renewed. No more rules lingering for decades after their use-by dates. 

These changes would signal that New Zealand is serious about success. They are practical. Achievable. Most importantly, they do not require massive spending – just smarter, faster government. 

The Prime Minister is right. It is time to remove the obstacles to growth.