Labour has announced the creation of a new investment vehicle called the New Zealand Future Fund, which it says will channel investment into local infrastructure and innovative businesses to create jobs and grow national wealth.
Labour Leader Chris Hipkins said the fund represented a new direction for the country’s economy, one that prioritises long-term, homegrown investment over short-term gains and offshore ownership.
“New Zealanders are inventive and resourceful, but years of underinvestment have left too many great Kiwi ideas without support, while the wealth we create flows offshore,” Hipkins said. “The Future Fund is about backing our own potential, creating secure, well-paid jobs, and building an economy made by New Zealanders for New Zealanders.”
The fund will be independently managed by the Guardians of the New Zealand Super Fund, with the Minister of Finance as the sole shareholder.
The structure will ensure independence from political interference while keeping investment decisions focused on long-term national benefit.
Finance and Economy spokesperson Barbara Edmonds said the fund would serve as a catalyst for economic transformation.
“For too long, great New Zealand ideas have struggled to get the investment they need. That ends with the Future Fund,” Edmonds said. “It will invest in the infrastructure and industries that create secure jobs, lift productivity, and keep more wealth in Kiwi hands.”
Labour said the fund would be seeded with a small number of Crown-owned assets that have commercial and public good purposes. These would provide a steady stream of revenue through dividends, and legal protections would prevent their privatisation.
According to the party, returns from the fund will be both financial and social, with an emphasis on projects that contribute to national resilience and community wellbeing. Potential investments could include renewable energy developments, technology start-ups, and regional infrastructure upgrades.
The party drew comparisons to international models such as Singapore’s Temasek and Australia’s superannuation funds, which have been credited with building national wealth and driving long-term economic stability.
Hipkins said the timing of the initiative reflected the country’s economic challenges, including declining productivity, high living costs, and an ongoing exodus of skilled workers.
“Every day, more than 200 New Zealanders are leaving for opportunities overseas,” he said. “We need to make sure those opportunities exist here at home. The Future Fund is about turning aspiration into action – building a country where our kids want to stay, work, and build their lives.”
Labour said the fund would also provide an alternative source of revenue for the government, reducing reliance on taxation while protecting state assets from privatisation.
Under Labour’s proposal, the Future Fund would complement but remain separate from the existing New Zealand Super Fund, focusing exclusively on investments within New Zealand.
The announcement forms part of Labour’s broader plan to “reset the economy” by encouraging domestic investment, supporting small and medium-sized enterprises, and shifting capital away from speculation and into productive industries.
Hipkins said the fund would help rebuild public confidence in New Zealand’s economic direction.
“This is about leadership that looks beyond the next quarter,” he said. “The Future Fund will deliver lasting value, create jobs, and ensure that the benefits of growth are felt in every household, business, and community across New Zealand.”
