A major demotion for one minister saw several others pick up new roles, explains Stewart Sowman-Lund for The Bulletin.

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Promotions and demotions

The prime minister has carried out his first substantive reshuffle, demoting Shane Reti down the rankings and stripping him of the high profile health minister role. 1News’ Tom Day broke down all the big moves here, explaining that Simeon Brown – who has undoubtedly been one of the government’s top performing ministers – will swoop in to try and steady the health ship. Chris Bishop picks up transport and Simon Watts takes on local government and energy – these were all roles previously held by Brown who presumably now will have his hands rather full. Nicola Willis, the finance minister, picks up a rebranded economic development role dubbed “minister for economic growth”. Meanwhile, Melissa Lee has lost her final portfolio, ethnic communities, and will no longer be a minister after previously having the broadcasting role taken off her in a minor reshuffle last year. Intriguingly, Mark Mitchell picks up the ethnic communities post. High flying first term MP James Meager has taken Lee’s spot as a minister, outside cabinet, and picks up fishing, youth, associate transport, and a brand new role as minister for the South Island.

Notably, given the three-party coalition system, none of the impacted ministers were from Act or New Zealand First.

A fall from grace

Shane Reti’s demotion is a brutal blow for a minister that was once National’s deputy and, briefly, interim leader. Politik’s Richard Harman argued (paywalled) that Reti was a “classic example of what happens when someone is made a minister in an area they have previously worked outside parliament”. He was highly skilled in his area, though there was a perception he lacked political nous. Reporting suggests that while talk of Reti being cut from the health role had been circling in Wellington for a while, the minister himself was left in the dark until Saturday. Asked to comment last Thusday by The Post, Reti said the suggestion he could be stripped of the health portfolio was “bizarre” and accused Labour of “mischief-making”. ThreeNews’ Jenna Lynch noted last night it was unusual for details of a reshuffle to leak out ahead of time, and yet the Herald, too, had reported ahead of time that Reti was set to be cut.

Reti’s fall from grace comes after a year of turmoil in the health sector, including the appointment of a new commissioner intended to overhaul Health NZ and bring down costs. The problems never went away and health continued to be a thorn in the government’s side, surging near the top of public concerns. A new poll last week also showed National being overtaken by Labour, though this reshuffle appears to have been in the works for longer. Newsroom’s Marc Daalder noted that while the prime minister, speaking yesterday, praised Reti for overseeing work at the health agency, he argued a new pair of hands would help speed up progress and allow the public to see results. “As with the economy, sometimes the perceptions around health are just as important as the concrete achievements,” wrote Daalder. As The Post’s Rachel Thomas analysed, while Reti, a doctor, was the obvious pick for the health role after the 2023 election, the PM now wants a delivery man who can get the job done.

Economic growth spotlighted

While Reti was the biggest loser and sucked up much of the attention yesterday, there are other moves of note in this reshuffle. The Herald’s Claire Trevett pointed out (paywalled) that giving Nicola Willis a new economic role in addition to finance helps demonstrate the PM’s dedication to keeping the economy at the top of the agenda in 2025. And by giving public service to Judith Collins – another reliable “fix-it” minister – it means Willis will no longer be associated with mass redundancies in the capital where she is based. The Post’s Luke Malpass argued Willis’s new role was the most significant in the reshuffle, consolidating her control over economic policy and making her “one of the most powerful finance ministers in recent memory”. Now in charge of the mega MBIE ministry along with Treasury, Willis will be able to “weave a more comprehensive growth narrative away from funding cuts and budget deficits,” wrote Malpass. Expect to hear a lot more about economic growth in the weeks ahead, including during Luxon’s state of the nation address on Thursday.

New minister for the South Island

A small group of ministers now hold many of the most powerful cabinet roles, wrote RNZ’s Jo Moir. Despite the headline promotions and demotions, Luxon’s reshuffle ultimately focused mainly on shuffling existing talent as opposed to spotlighting less experienced MPs. James Meager, the first term MP, has assumed the new role of minister for the South Island and is the only new minister, replacing Melissa Lee outside of cabinet. There is one other interesting decision. Matt Doocey remains in cabinet despite having been stripped of his tourism and ACC roles. He is now just the minister for mental health, along with holding an associate health role. Several commentators questioned why Doocey remained in cabinet, with Trevett suggesting it could be due to the optics of dumping one of the few South Island-based ministers. After performing well in Auckland at the last election, there has been some criticism the government has been ignoring the South since taking office. Labour leader Chris Hipkins claimed that appointing the “most junior minister” responsible for the South Island showed the government’s “utter contempt” for the mainland, reported Adam Pearse for the Herald.