Science reforms just the entrée to government's growth agenda

A rolling maul of policy announcements has been promised to attract foreign investment.

Mōrena, and welcome to The Bulletin for Friday, January 24.

In today’s edition: Rātana welcomes MPs to start political year, Labour regroups and sets its sights on reelection in 2026, and Oscar nominations are finally here – with some surprises. But first, the biggest reforms to the science sector in three decades.

Major reforms to the science sector

The government has unveiled what it has described as the largest reform to the country’s science sector in more than 30 years, as it pushes to attract foreign talent and grow the economy. We’ll have more on what else the prime minister outlined in his state of the nation speech further down, but first, a look at what was announced around science. The Spinoff’s Shanti Mathias has an excellent explainer of the move and the background to it, reporting that outgoing science minister Judith Collins announced the existing seven Crown Research Institutes will be merged into three Public Research Organisations, while a fourth will be created specifically to focus on “advanced technology”.

The changes are largely targeted at ensuring that research funding has more direct commercialisation potential, explained Mathias, with the launch of a new “one-stop shop” called Invest New Zealand to attract international expertise and foreign investment into New Zealand’s innovation sector. If all of this sounds familiar, that might be because the government has already cut Marsden fund grants for humanities and the social sciences, as Mathias explained last year, arguing that “real impact on our economy will come from areas such as physics, chemistry, maths, engineering and biomedical sciences”.

Callaghan Innovation to be shuttered

The science reforms will also see the closure of Callaghan Innovation, the Crown entity responsible for making business more innovative, with hundreds of staff impacted (some will be shifted around to parts of the reformed science sector) It’s not a totally surprising decision, though it wasn’t one that had been explicitly foreshadowed. Callaghan had been facing cost pressures for some time, not helped by the government’s push to find savings in the public sector. The Post reported last year that Callaghan was grappling with a proposed “reset” in order to focus “exclusively on revenue generating, commercial science services” – which sounds a lot like what the government is now enforcing across the board.

One perception of Callaghan is that it had relied on taxpayer funding for ventures that did not always deliver a worthwhile outcome. The Taxpayers’ Union has, for several years now, argued for disbanding the agency. In 2017, reported Stuff at the time, Act leader David Seymour described Callaghan as a “bureaucratic money-go-round”, though the then-National government pledged not to interfere. Seymour was still pushing for this in the run up to the last election, and his party was quick to welcome the announcement yesterday.

Science sector welcomes changes, but questions funding

The changes announced had been in the pipeline for a while, with a review panel set up by the government early last year to investigate revamping the science sector. The lengthy wait has seen the role of chief science advisor to the prime minister left vacant for some time. That position is set to be reshaped anyway, in light of the newly announced changes. The structural reforms have drawn a generally positive response from the science sector, reported BusinessDesk’s Greg Hurrell (paywalled), though there is some concern basic research – including in humanities subjects – could be neglected due to a lack of new funding. The Science Media Centre has compiled a comprehensive list of reactions to the announcements. Among them, Troy Baisden, co-president of the New Zealand Association of Scientists, who questioned whether the only goal was to “drain economic gain from the pool of knowledge developed over decades, without continuing to invest in either foundations or the pipes, composed of scientists and their careers through which knowledge flows”?

Growth, growth, growth…

I wrote yesterday that we were going to be hearing a lot about growth this year. As The Spinoff’s Toby Manhire reported from Luxon’s state of the nation address, the word cropped up no less than 43 times in the PM’s speech. “Yesterday was about whacking the starter motor with a hammer, of jolting out of the doldrums into a virtuous circle: confidence begets growth and growth begets confidence and somewhere along the way the mojometer goes ding,” wrote Manhire.

Luxon’s speech came on the same day that Stats NZ reported record numbers of New Zealanders were choosing to leave the country, an unfortunate backdrop to the government’s pledge to make the country an appealing place to live and work. While the science reforms were one part of the plan to drum up, yes, growth and innovation, there was more. As Manhire explained, much of the speech centred on political rhetoric. Luxon criticised the “culture of no” in New Zealand, arguing for things like more mining, more tourism and more concerts at Eden Park. Herald columnist Matthew Hooton (paywalled) observed “Obama-esque rhetoric” in the PM’s speech, noting that there were few solid policy details. Though, the government has promised a “rolling maul” of announcements in the months ahead, signalling yesterday was just the entrée. As Manhire pointed out, “six years ago, almost to the day, another new government embarking on its second full year in power pledged that 2019 would be ‘the year of delivery’. It was not long at all before that stake in the ground had metamorphosed into a rod for its back.”

Have thoughts? Join the conversation in the comments.

Special Opening Night Screening: The Haka Party Incident

We're excited to invite you to a special screening of The Haka Party Incident – the powerful new Kiwi documentary that tells the story of a pivotal moment in New Zealand’s history.

In 1979, a group of Māori and Pasifika students at the University of Auckland took a stand against a parody haka performed by Pākehā students. The consequences were severe, with many of the activists facing criminal convictions. Director Katie Wolfe unearths this often-overlooked event with powerful interviews and thought-provoking storytelling.

The screening will be followed by a Q&A with Director Katie Wolfe and The Spinoff Ātea editor, Liam Rātana.

When: Thursday 30th January, 6pm
Where: Rialto Newmarket, Auckland

Only five double passes available – be one of the first five to RSVP and claim yours. Email rsvp@thepublicgood.co.nz now to reserve! (sponsored)

Rātana welcomes MPs to start political year

Politicians from across the political spectrum (bar Act) will converge on Rātana today for annual celebrations that typically mark the start of the political year. It’s already been a busy week, with a reshuffle from National and an agenda-setting speech from the prime minister. As the Herald’s Adam Pearse reported, despite Act’s no show today, leader David Seymour’s Treaty principles bill is expected to be a key issue on the agenda, with oral submissions due to start shortly.

More reading:

• Why Rātana is an important date on the political calendar (1News)

• Why the Māori Queen’s visit to Rātana marks a new era (NZ Herald)

Help keep The Spinoff ticking

Last year we published an open letter outlining our current reality.

We revealed that only 2% of our audience support us financially and shared the real need to double the number of members who support us with monthly or annual payments.

We still have a way to go, but the support has made us as determined as ever to get there. Please continue to spread the word and share the letter.

If you haven't yet, please become a member or donate today.

Labour regroups with sights set on 2026

Leader of the opposition Chris Hipkins cut a casual figure, donning shorts and jandals, as Labour MPs regrouped in Palmerston North yesterday. He has reason to feel buoyant going into another year, with Stuff’s Glenn McConnell reporting that internal polling matched a Curia survey from last week and had Labour leapfrogging National. It’s just a couple of polls and there’s a long way to go, but it’s undeniably an extraordinary result little over a year into the government’s term of office. Though, as McConnell noted, Hipkins has a tough battle ahead: it’s been 65 years since a prime minister has lost an election, stayed on in opposition, and gone on to retake the top job.

More reading:

• “We over promised and under delivered”: Labour kicks off caucus retreat with “home truths” (The Post)

• Rubber hits the road for Labour in 2025 (Newsroom)

Join us live in 2025

We have four fantastic live events in 2025. Join us in Auckland and Wellington for The Spinoff Live!

Auckland at Q Theatre: Bryn & Ku’s Singles Club Party, February 13 and Gone by Lunchtime Live, April 9.

Wellington at the Hannah Playhouse: The Fold Live, February 20 and The Spinoff Book Club, March 13.

Listen: Is 2025 the year to thrive?

Last June the economists at Kiwibank published an article titled “Survive ‘til 25”, outlining what they saw as a tough six months ahead for our economy. Well we’ve made it to 2025, but is the economic year ahead going to be about surviving or thriving? Kiwibank economist Sabrina Delgado joins Bernard Hickey on When the Facts Change to try and find out.

To support work like this, consider becoming a Spinoff Member.

Click and Collect

• Act leader David Seymour expected to blow open privatisation debate.

• An interesting read for Newsroom Pro subscribers from former Labour minister Stuart Nash, who suggests that “Labour is unelectable if they are, in any way, tied to, or seen as needing, Te Pāti Māori to form a government”. (paywalled)

• Police decide not to charge ex-MP Golriz Ghahraman over Pak’nSave “shoplifting” incident.

• New Zealand Winter Games canned after 15 years.

• What Ngāi Tahu wants from new South Island Minister James Meager.

• Nicola Willis’ greater economic powers could come at a cost.

• The Oscar nominations are here, with musical drama Emilia Pérez leading the pack. I’ve seen most of the frontrunners and would highly recommend Anora, The Brutalist and, if you somehow haven’t seen it, The Substance. Collider breaks down the biggest snubs and surprises (no Pamela Anderson, no Daniel Craig and nothing for Challengers).

Right now on The Spinoff

Allison Hess finds reasons to be hopeful in 11 stories of the natural world bouncing back through conservation. A group of Spinoffers remember their love for the products of The Body Shop as the company goes into voluntary administration in New Zealand. Brian Easton considers why New Zealand isn't ready to extend the parliamentary term. Hera Lindsay Bird advises a reader who has started to dread catch-ups that feel like job interviews.

That’s it for another week, thanks for reading. I’m off for Auckland Anniversary Day on Monday, see you back here on Tuesday.

Want to get in touch? Join the conversation in the Substack comments section below or via email at thebulletin@thespinoff.co.nz if you have any feedback on today’s top stories (or anything else in the news).

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