Former airline executive Christopher Luxon was sworn in as New Zealand’s prime minister on Monday, aiming to control inflation and lower interest rates.
Luxon took over six weeks after his conservative National Party won national elections, ending Jacinda Ardern’s six-year Labour Party reign.
Luxon, the former CEO of Air New Zealand, was sworn in as the leader of a new coalition government in Wellington by New Zealand’s governor-general.
“It is an honour and an awesome responsibility,” Luxon told reporters.
“The number one job is to fix the economy. We have to reduce the cost of living and get inflation under control so we can lower interest rates and make food more affordable.”
The last Labour administration has battled to keep growing living costs under control, a worldwide challenge exacerbated by pandemic-related supply concerns and Russia’s invasion of Ukraine.
Labour Party leader Chris Hipkins succeeded Ardern as Prime Minister in January.
She had abruptly quit, bringing her five-year tenure to an end because she no longer had “enough in the tank.”
Luxon is New Zealand’s 42nd prime minister, having cobbled together a coalition government in arduous discussions that ended Friday, six weeks after the election.
To rule in the 123-seat parliament, his National party has established a three-party coalition with the conservative ACT and populist New Zealand First parties.
In a first for New Zealand, the deputy prime minister role will be shared in two 18-month stints.
New Zealand First leader Winston Peters, 78, was sworn in alongside Luxon as deputy prime minister, but will hand over the role at the end of May 2025.
He will be replaced by ACT leader David Seymour for the remainder of the three-year parliamentary term.
Luxon said he would hold his first Cabinet meeting Tuesday and look to quickly finalize a 100-day plan. He said he also planned a visit to Australia before Christmas Day.
Luxon said he needed to get a Treasury briefing on the state of the government’s finances.
“We are concerned and worried that it’s been a deteriorating picture for a number of months now,” Luxon said.
Under the coalition agreement, Luxon has promised to deliver tax cuts and train 500 more police officers within two years.
He has also promised less government bureaucracy, including a 6.5% cut to the public service.
Luxon said it would be up to ministry chief executives to figure out how to make the cuts, whether by stopping programs, not filling vacancies or laying off some workers.
The new government also plans to repeal tobacco restrictions approved last year by the previous government, including requirements for low nicotine levels in cigarettes, fewer retailers and a lifetime ban for youth.
Luxon said his government disagreed with parts of the policy, including concentrating distribution. He said smoking rates had been coming down for 30 years.
“We will continue to make sure we have good education programs and encourage people to take up vapes as a cessation tool,” Luxon said.
But critics said the plan was a setback for public health and a win for the tobacco industry.
Luxon, a father of two, is a wealthy teetotaller and lover of country music who rose to prominence when he ran the national airline for seven years before entering politics.
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