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Hipkins pledges more small business AI support in Rotorua

Author
Kelly Makiha,
Publish Date
Tue, 11 Aug 2026, 3:21pm
Labour leader Chris Hipkins pictured in Rotorua on Tuesday. Photo / RNZ, Mark Papalii
Labour leader Chris Hipkins pictured in Rotorua on Tuesday. Photo / RNZ, Mark Papalii

Vote 2026

Labour leader Chris Hipkins pledged more support to help small businesses join the “AI revolution” during a visit to Rotorua today.

It came two weeks after Prime Minister Christopher Luxon’s comments to business owners in the city caused a stir around the country.

Hipkins said small businesses and start-ups were driving the next wave of New Zealand innovation.

“While Christopher Luxon tries to cut his way to growth and lecture businesses to ‘be adult’, Labour will increase opportunities to access start-up funding and make sure small businesses aren’t locked out of the AI [artificial intelligence] revolution.”

Hipkins’ comments referred to Luxon’s controversial July 31 speech to the Rotorua Business Chamber Westpac Smarts Breakfast, when the Prime Minister said businesses needed to “be adult” and move away from a “parent-child mentality” of waiting to see what the Government would do.

Luxon’s remarks were labelled out of touch and patronising, and he later apologised.

Labour’s policy announcement today included annual funding for a $2 million AI small business fund, boosting AI adoption and extending the AI Advisory pilot to $3m, and increasing the Founder and Startup Support Programme by $4m a year.

This was the final step in the party’s Small Business Action Plan.

Hipkins said AI had enormous potential for small businesses.

“It can help a plumber get quotes out faster, a retailer manage their stock, or a small exporter find new customers overseas – freeing up time to focus on the work that grows their business.”

Labour small business spokesman Dan Rosewarne said the party wanted to see small businesses get off the ground faster and have access to the same AI support as big competitors.

“The next great Kiwi business could be taking shape today in a university lab, as a prototype being built in a garage, or by someone working late into the night at their kitchen table,” Rosewarne said.

He said starting a business took more than a good idea.

“Founders need the right advice and support to turn that idea into something people will buy, build a team and find the investment they need to grow.”

“Increasing investment in the Founder and Startup Support Programme will help more Kiwis get their ideas off the ground and into the world.”

Rosewarne said Labour was backing businesses to spend “less time battling day-to-day barriers and more time innovating and getting ahead”.

Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.

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