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Watch: National would let petrol taxes fund Queenstown gondola project

Author
Anna Leask & Rosie Leishman,
Publish Date
Fri, 14 Aug 2026, 10:05am

Vote 2026

Prime Minister Christopher Luxon says a re-elected National Government will finish a new Christchurch Hospital wing “now, so all 96 beds are ready for patients straight away instead of waiting”.

The hospital’s Tower Three is being built, with 96 beds included as shell space, Luxon told hundreds of business and political leaders at the first South Island Election Conference in Christchurch this morning.

“The rooms are there, but not finished off. National will complete them now, so all 96 beds are ready for patients straight away instead of waiting – adding real capacity to the South Island’s largest hospital as Canterbury grows.”

It was estimated to cost $70 million to finish the fit-out, Luxon said.

Luxon said commitments in National’s Plan for the South Island include: 

  • Enabling investment in the Rolleston intermodal freight hub. 
  • Making public transport funding available for Queenstown gondola solutions in the National Land Transport Fund. 
  • Development of a new Government Policy Statement on mining and extraction under the Fast Track Approvals Act. 
  • A new requirement for data centre projects to be accompanied by new, firmed generation. 
  • Completion of Tower Three at Christchurch Hospital, delivering 96 additional beds for patients.  

“There’s a lot going well in the south, but there’s more we can do to unlock its full potential. 

“National backs the South Island to succeed, and today we’re announcing a package of commitments that will drive further growth and create more opportunities, jobs and higher wages. 

“We’re investing in infrastructure to support growing communities, cutting red tape that is holding back energy generation, jobs and tourism, and delivering better public services with more hospital beds and classrooms. 

“By getting the books back in order and managing the economy responsibly, National can continue investing in growth while improving the public services New Zealanders depend on. 

“We’re fixing the basics, backing growth and building the infrastructure needed to help the South Island reach its full potential.” 

On the spot 

South Island business leaders are putting politicians on the spot today – demanding answers on investment in the region. 

Around 640 business and political leaders are at the conference, including Luxon, Act’s David Seymour and Labour’s Chris Hipkins. 

The conference, presented by Business Canterbury, kicked off at the Christchurch Convention Centre Te Pae at 9.30am. 

Prime Minister Christopher Luxon speaks to a packed Business Canterbury crowd in Christchurch. Photo / Anna HeathPrime Minister Christopher Luxon speaks to a packed Business Canterbury crowd in Christchurch. Photo / Anna Heath 

“From what we understand, it’s to be the biggest business election conference in New Zealand, and I think that speaks volumes, too, about the real interest in the South Island and the role that we can play in growing our contribution to the New Zealand economy,” Business Canterbury chief executive Leeann Watson said. 

“We’re really excited to be hosting ... we’ve got 640 people coming along, and I think that in itself is a real demonstration of the very real interest in how the South Island can take a larger role in contributing to the New Zealand economy.” 

The programme began with Luxon giving an address, followed by a panel discussing all things economy, including productivity, innovation, economic agenda and tax settings. 

Hipkins will address attendees before a workforce panel about immigration, health and safety, industrial relations and education. 

The last item on the programme is a South Island infrastructure debate between National Minister Chris Bishop and Labour’s Kieran McAnulty. 

Business Canterbury chief executive Leeann Watson. Photo / RNZ, Nate McKinnonBusiness Canterbury chief executive Leeann Watson. Photo / RNZ, Nate McKinnon 

Prime Minister Christopher Luxon and Labour Party leader Chris Hipkins. Photo / NZMEPrime Minister Christopher Luxon and Labour Party leader Chris Hipkins. Photo / NZME 

Earlier this week, a new report revealed that only $1 of every $9 of Government roading funds gets spent in the South Island.

The report confirmed that the South Island accounts for almost a quarter of the country’s population, 22% of gross domestic product (GDP), a third of export goods and 40% of international visitor spending.

However, the region receives only 11% of transport spending.

Earlier this year Business Canterbury joined with the seven other South Island Chambers of Commerce to launch a shared election policy platform and called on all political parties to back the South Island as a driver of New Zealand’s next phase of economic growth.

The manifesto, Growing New Zealand from the South: A Policy Platform for Election 2026, sets out a shared vision for “unlocking investment, productivity and sustainable growth across the South Island economy, while providing political parties with a clear and actionable blueprint for supporting regional business success”.

Representing around 7,000 businesses, the combined chambers set what they described as an “ambitious” goal – lifting South Island GDP per capita to at least $130,000 by 2035 and positioning the South Island above the national average in living standards and economic performance.

Leeann Watson. Photo / SuppliedLeeann Watson. Photo / Supplied 

Watson said the reason for holding the conference was “really clear”.

“We want to make sure that those who are in the next government – and in fact all of the political parties that play a role in shaping our future – really understand that backing the South Island is a way to driving New Zealand’s economic prosperity.

“You know, we’ve got so many opportunities here and what we want to do is really highlight what those opportunities are and what is needed from the government in order to realise those opportunities.

“So our message has been really simple and really clear – if New Zealand wants stronger productivity, they want higher incomes and greater resilience, then backing the South Island and backing its growth is one of the smartest investments that they can make.”

Te Pae convention centre in Christchurch.Te Pae convention centre in Christchurch. 

Watson said the conference would be “well structured” and there was “good representation” from the main political parties.

“We’ll be asking the hard questions,” she promised.

“We’ll be really focusing them in on what some of the policy platforms mean specifically for the South Island.

“We don’t want generic policy comments. We actually want them to demonstrate how well they understand and how well they are committed to investing in the future of the South Island.”

Watson said the conference was a way for those wanting to be in power after the upcoming election to share their views – and for South Islanders to “hold them to account”.

“It’s not just all over after the conference tomorrow,” she said.

“It’ll be a very strong advocacy platform for Business Canterbury and the other chambers of commerce across the South Island, to use in their ongoing engagement in partnership with the government.”

Anna Leask is a senior journalist who covers Christchurch issues and national crime and justice. She joined the Herald in 2008 and has worked as a journalist for more than 20 years with a particular focus on family and gender-based violence, child abuse, sexual violence and homicides. She writes, hosts and produces the award-winning podcast A Moment In Crime, released monthly on nzherald.co.nz. 

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