National pivots to South Island growth plan: 'Powerhouse'

National leader Christopher Luxon announces a South Island growth plan in Christchurch on Friday.

National has sought to draw a line under a bruising week, launching a South Island growth plan two days after leader Christopher Luxon survived a confidence vote and dumped the minister who challenged him.

The National leader had told caucus he held its "full support" on August 12, only four months after MPs last voted on his premiership. He then sacked Chris Penk, who had launched the challenge, with the MP announcing that evening he would not contest November's election.

Speaking at the Business Canterbury election conference on Friday, Luxon said the plan commits $50 million to shared road and rail connections for a proposed intermodal freight hub at Rolleston and $25 million to four-lane a stretch of road into Queenstown past Hansen Road down to the Five Mile roundabout.

He said a re-elected National government would invest in the infrastructure, exports, energy and public services needed to drive the South Island's "next chapter of growth".

"The South Island is a powerhouse of the New Zealand economy. Worth around $100 billion a year, its farms, vineyards, mines, ports and tourism operators help drive growth, create jobs and generate export income that benefits the entire country," he said.

The party also committed to making public transport funding available for Queenstown gondola solutions, a new Government Policy Statement on mining and extraction under the Fast Track Approvals Act, and a requirement that new data centre projects be matched by new firmed generation.

Luxon said National was "already delivering for the South Island", citing a 42% increase in transport investment to nearly $4 billion.

"There's a lot going well in the south, but there's more we can do to unlock its full potential," he said.

The plan also promises $70 million to fit out Tower Three at Christchurch Hospital, delivering 96 additional beds.

South Island 'an afterthought' for National - Labour

Labour campaign chairperson Kieran McAnulty.

Labour campaign chairperson Kieran McAnulty accused National of neglecting the South Island for most of the term and reviving old promises as the election nears.

"Everything National announced today should already be underway. Instead, South Islanders have had delay after delay, downgrade after downgrade, and a Government that has treated the South Island as an afterthought," he said.

"After ignoring the South Island for most of this term, it's like they suddenly remembered it exists and dipped behind the back of the sofa to see what promises they could dust off."

McAnulty pointed to what he called stalled transport projects, "botched ferries" and bungled work on the Nelson and Dunedin hospitals, and said a Labour government would "take the politics out of infrastructure decisions".

"South Islanders don't need another glossy announcement. They need spades in the ground and a Labour Government that delivers," he said.

The announcement comes after a week of turmoil for National. Senior minister Mark Mitchell told 1News the caucus expected to take "a hit in the polls" but had "emerged completely united", while Labour leader Chris Hipkins said National was "focused on fighting amongst themselves".

The general election is scheduled for November 7.

The morning's headlines in 90 seconds, including new footage of an armed man running into Sylvia Park, a train derails in the UK, and a Brisbane supermarket fight caught on camera. (Source: 1News)

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