Dr Shane Reti demoted; Simeon Brown gets Health; Mark Mitchell adds Ethnic Communities and Sports and Recreation to his portfolios
Venkat Raman
Auckland, January 19, 2025
In a major, unexpected move, Prime Minister Christopher Luxon reshuffled his Cabinet, rewarding some with additional portfolios, changing the roles of a few and demoting a few others.
Melissa Lee, who held the roles of Ethnic Communities and Economic Development has been dropped from the Council of Ministers altogether, with the latter allotted to Nicola Wills with the name changed to Economic Growth. Ms Willis will now be the Minister for Finance, Social Investment and Economic Growth.
Mr Luxon said that he is delivering a refreshed team focused on unleashing economic growth to make people better off, create more opportunities for business and “help us afford the world-class health and education that Kiwis deserve.’
He said that Ms Willis will focus on leading the government’s growth agenda to unleash the potential of our businesses to grow, develop talent and attract investment.
“That will mean coordinating and strengthening efforts that are already underway to deliver economic growth and taking responsibility for new initiatives designed to promote growth and productivity in the New Zealand economy,” he said.
Mr Luxon said that New Zealand made ‘solid progress’ on the economy.
“Inflation has fallen significantly and now a steady march of interest rate cuts are translating into real financial relief for households. Having set the building blocks for rebuilding the economy, 2025 is all about going for growth and I am refreshing my team to underline this priority,” he said.
While a reshuffle was on the cards, such significant changes were not expected. Mr Luxon’s move aims to address pressing issues within the government and align the Cabinet with his vision for the country’s future. The changes reflect Mr Luxon’s commitment to economic growth, improved healthcare, and enhanced governance.
New role for Dr Shane Reti
One of the most notable changes in the reshuffle is the replacement of Dr Shane Reti as Minister of Health with Simeon Brown. Dr Reti will now take on the role of overseeing New Zealand’s Universities and the Science sector. This move is seen as a response to growing public concern over the state of the health sector, which has been plagued by staff shortages, governance issues, and funding deficits.
Simeon Brown, previously Transport, Local Government, Energy and Auckland Issues Minister will be the new Health Minister.
“Simeon is an outstanding and diligent Minister who has done an excellent job delivering on the government’s priorities. Off the back of that performance, I have decided that his skills are best placed to take leadership of our health system going forward,” Mr Luxon said.
Cabinet Reshuffle Jan 19, 2025
Reasons for the Reshuffle
Mr Luxon cited several reasons for the reshuffle, the foremost of which is a need to address the challenges facing the health sector. The public’s growing concern over healthcare accessibility and quality has necessitated a change in leadership.
Mr Luxon said that Dr Reti worked hard to reset the culture and performance of Health NZ.
“It was critical to establish targets and refresh their leadership and I am confident that the organisation is heading in a much better direction than it was when we entered office,” he said.
Nicola Willis, in addition to her role as Minister of Finance and Minister of Social Investment, will now also serve as Minister for Economic Growth. This move is intended to streamline efforts to promote economic development and attract investment.
“In 2024, Nicola did a fantastic job delivering tax relief for hardworking Kiwis and restoring a culture of fiscal discipline, with New Zealanders now seeing the benefits in the form of lower inflation and interest rates. In 2025, I am confident that she will bring that same focus and dedication to the task of unleashing Kiwi businesses to grow at pace,” Mr Luxon said.
Expectations of the New Cabinet
The reshuffled Cabinet is expected to focus on several key areas.
There is a strong emphasis on healthcare. With Mr Brown as Minister, the government aims to address the issues plaguing the health sector and ensure that New Zealanders have access to quality healthcare.
Mr Luxon has set high expectations for Mr Brown, stating, “I have also heard Kiwis’ concerns that they expect to see even more progress, ensuring that they can access the care that they need, when they need it. To deliver on that expectation, I have decided Simeon Brown will become Minister of Health,” he said.
Economic growth is another priority for the new Cabinet. The expanded role of Ms Willis reflects the government’s commitment to fostering economic development and creating opportunities for businesses. The focus will be on implementing initiatives that promote growth and productivity, ultimately benefiting the New Zealand economy.