Category: Labour Party

Hundreds of jobs could go as the impact of public service cuts hit the Ministry for Primary Industries and the Ministry of Health.

“The human cost of the Government’s tax cuts is becoming clear and it will have an impact on the services New Zealanders rely on,” Public Service spokesperson Ayesha Verrall said.

“Cutting biosecurity and public health officials will expose New Zealand to imported pathogens that can be catastrophic for our health and economy. Labour strengthened these services to fight Mycoplasma Bovis and COVID-19, but this government is undoing that good work and leaving New Zealand vulnerable. 

“Nicola Willis’ fiscal plan didn’t add up before the election, and now vicious cuts to valued jobs and services are the cost of her fiscal incompetence.

“This government has its priorities all wrong – it has offered tax breaks to landlords while threatening to cut school lunches and disability services. Cuts to public services will take New Zealand backwards.

“These cuts will have impacts across the country and are particularly threatening to the Wellington economy.

“These are the public servants that step up during emergencies and go above and beyond to support communities through outbreaks and natural disasters.

“I am appalled that there are some politicians who see the loss of livelihoods and capacity within the public sector as a good thing. Labour values these workers’ contribution to our country,” Ayesha Verrall said.

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The Minister for Disability Issues has confirmed she was aware of funding issues in mid-December and did nothing to stop it. On 14 March, she signed off on changes that were announced and implemented on 18 March without any consultation with disability communities.

“I am appalled that Minister Penny Simmonds has done nothing to support people with some of the toughest jobs in the country,” Disability Issues spokesperson Priyanca Radhakrishnan said.

“She finally apologised in Question Time today to disabled communities for the lack of consultation and communication about the changes, which is a good start.

“However, it’s a bit half-baked when she never sought additional funding, despite having months to do so, and was the person who signed off on these changes last Thursday, just days before they were implemented.

“This means she was comfortable with them being announced and implemented on the same day without consultation.

“When she was first alerted to the forecast overspend, Minister Simmonds should have spoken to the Finance Minister immediately and advocated for a pre-budget commitment so that flexibility did not have to be removed from disability support funding without consultation.

“Instead, she chose not to stand up for the communities she is supposed to be representing in Government and approved the removal of support for carers and disabled people.

“This is disgraceful. The Government should stop ignoring disability communities, and must act immediately to reinstate funding flexibility and engage with them before any changes are made,” Priyanca Radhakrishnan said.

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The National Government continues to talk about irresponsible tax cuts that will only drive up inflation, despite the country entering a technical recession.

GDP declined 0.1 percent in December, following a decrease of 0.3 percent in the previous September quarter. This meets the definition for a technical recession.

“Kiwis have been dealing with a cost of living crisis for some time and are yet to see a single policy from the new Government to help them,” finance spokesperson Barbara Edmonds said.

“Instead of policies to make childcare more affordable, making most prescriptions free, or half price public transport, this Government has just spent nearly $3 billion on landlords and is still planning tax cuts that won’t benefit working people in the way they promised.

“These decisions also risk free lunches for school kids and flexible funding for carers of people with disabilities.

“Even the IMF, an international body that monitors and advises on countries’ economies, has warned the Government about spending money on tax cuts that could be inflationary. For a party that claims economic credibility this is a massive blow.

“We were realistic during the campaign about what the country was facing. We told the National Party their numbers didn’t add up and they ploughed on ahead with promises anyway and ignored all warnings.

“They should heed these warnings and pull back on their plans for tax cuts, which will only be more inflationary and lead to harder times ahead for working people as services are cut in order to pay for them.

“Economists have all been forecasting tough times, it’s time National started being up front and making decisions for all Kiwis, not just a few,” Barbara Edmonds said.

The Minister for Disability Issues must act urgently to reinstate flexibility around the funding for disability support and apologise to disabled carers.

“Ever since changes to funding flexibility for disabled people and their carers were quietly made and implemented on Monday, the disabled community has been rightly angry and upset,” disabilities spokesperson Priyanca Radhakrishnan said.

“I’ve had so many people get in touch with me concerned about what the next weeks and months mean for them if they can’t access services previously funded. For many, caring for somebody with a disability is a 24/7 job and this funding is the only thing that allows them to catch a break.

“Yesterday’s u-turn was just painting over cracks of National’s own making. The Minister says she wants funding going to those with the greatest needs – how does she determine need? The wellbeing of disabled people relies on their carers, and carers need respite in order to have the capacity to care for the disabled person.

“Disabilities Minister Penny Simmonds and Finance Minister Nicola Willis must act urgently to reinstate funding flexibility and give communities a say on any changes.

“Penny Simmonds should also apologise for her belittling comments about people who give so much of their lives caring for disabled whānau.

“I am shocked that we have a Minister who knew about issues around funding in December but didn’t take any action on behalf of the communities she is supposed to represent. She has a chance now to make it right and she should apologise and act fast,” Priyanca Radhakrishnan said.

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The Government has accepted Labour’s change to the Road User Charge (RUC) discount for hybrid vehicles, meaning there will still be some incentive for people to buy greener vehicles.

“During the select committee’s hearing of the Road User Charges (Light Electric RUC Vehicles) Amendment Bill, Labour put forward an amendment to increase the discount for hybrid vehicles from 30% to 50% of the current rate for petrol vehicles,” transport spokesperson Tangi Utikere said.

“Because National MPs didn’t participate in the vote, the select committee supported the change – and now the Minister has said he will as well.

“This is an unexpected but welcome win for the climate and the continuation of Labour’s goal of incentivising the purchase of cleaner and more efficient vehicles,” Tangi Utikere said.

The Labour Government began work on extending RUC to hybrid and electric vehicles in 2022. Though it was considering a lower discount rate than the 50% proposed by Labour at Select Committee, the 2022 proposal was alongside the Clean Car Discount which encouraged the uptake of electric vehicles at the time of purchase.

“This comes at a time the Government is rolling back climate policies without a clear plan for how they’re going to meet our 2030 emissions targets,” Tangi Utikere said.

“It also shows the importance of scrutiny and the select committee process. It is a better bill as a result of the public having the opportunity to submit and a debate being had about the proposal.

“I’m proud of my colleague Arena Williams for standing up for the climate and putting forward this change, and glad the Minister has seen the sense in keeping an incentive for purchasing greener vehicles,” Tangi Utikere said. 

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This year is about getting real with Kiwis and discussing the tough issues, as the National Government exacerbates inequality and divides New Zealand, Labour Leader Chris Hipkins said

The Labour Party Caucus had its away day at Brackenridge in Wairarapa during the first Parliament adjournment of the year to take stock of the campaign result and reflect on the Coalition’s abysmal first 100 days.

“It’s not easy losing an election and Labour has work to do to get back to where we want to be as a party,” Chris Hipkins said.

“Despite that, our Caucus is united, together, and will be working hard to build a policy platform Kiwis want to see. All ideas are on the table as we explore a new era for Labour.

“This Labour team is one I am honoured and excited to lead. At the end of this month, I plan to make a speech to Labour members that outlines my values and why Labour will govern for all.

“Between May and June I will attend every Labour Party regional conference to hear ideas, engage with our members and partake in the policy process in the lead up to our Annual Conference later this year. We will not be making major policy announcements until we have heard from members and the public. 

“Our current focus is on building strong policy foundations and getting work underway. It’s not a process we plan to rush, rather one we want to get right.  

“This process will ensure we are doing what New Zealanders’ want, because what we are seeing right now from National is a government with everyday Kiwis at the bottom of their priority list.

“Labour’s Caucus retreat comes off the back of the Government’s first 100 days. We’ve been waiting to hear their plan. Waiting to see if they have a vision for New Zealand. Now we know for certain that they are not governing for all New Zealanders, but for themselves. 

“We’ll be making it very clear over the next two-and-a-half years that the only party with a vision for New Zealand is Labour,” Chris Hipkins said.

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The Coalition Government’s miscalculation saga continues as it has forgotten an eyewatering $90 million gap in its interest deductibility cost figures, say Labour Finance spokesperson Barbara Edmonds and Revenue Spokesperson Deborah Russell.

“The Government has forgotten to include $90 million of the cost of changing interest deductions for landlords in the current financial year, a scheme costing almost $1 billion more than they bargained for,” says Barbara Edmonds.

“The changes to interest deductions start on 1 April this year. But according to data seen by New Zealand Herald, the government figures don’t show any impact on the government’s books until the 1st of July. That’s a mismatch of $90 million.”

“According to recent media reports, the policy will cost a total of $2.915 billion over four years, $800 million more than National calculated. Missing the mark by almost $1 billion is atrocious book-keeping and will leave frontline services to make cuts to cover the Government’s spend on millionaire landlords,” says Deborah Russell.

“The government costings for the changes to interest deductibility show a cost of $360 million in 2024/25, $785 million in 2025/26, $815 million in 2026/27 and $915m in 2027/28. No cost has been released for 2024/25, even though the policy takes effect from 1 April 2024, the start of the last quarter of the government’s financial year. Based on the numbers released by the government, that cost is likely to be $90 million, a quarter of the cost of the first year of the policy.

“The mega landlord priority is becoming more and more expensive, while support for children and families has well and truly fallen by the wayside,” Deborah Russell said.

“We have almost $3 billion that could instead be 439 million lunches for children, it could keep our smokefree generation, it could mean Police are paid fairly for the work they do to keep our communities safe,” says Barbara Edmonds.

“Making a mistake like this is careless, and it adds to Nicola Willis’ woeful record of being unable to say what her policies will really cost taxpayers.

“The Government continues to insist this will benefit tenants, an impossible insistence when landlords have no obligation to pass on savings. This is not a way to help New Zealanders make ends meet and it will in no way help those who rent,” Barbara Edmonds said.

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He Pou a Rangi Climate Change Commission has today released advice that says if the Government doesn’t act now New Zealand is at risk of not meeting its climate goals. 

“I am deeply concerned that climate change is not a priority for this Government,” Labour Climate Change spokesperson Megan Woods said.

“National has consistently said they’ll rely on the Emissions Trading Scheme as their tool to reduce emissions, but this advice shows they haven’t done anything to ensure it’s up to scratch. 

“We set up the Climate Commission to hold successive Governments accountable and it has sent a strong signal to this new Government that they need to get their skates on.

“They must move quickly to ensure the ETS is aligned with our emissions budgets and international obligations.

“The alternative is we fail, after six years of focus and hard work resulting in an actual reduction of emissions over the past three years.

“National has stopped work on the ETS review and is cancelling programmes that would make a real and tangible difference to reduce emissions.

“In the advice released today, the Climate Change Commission has said that leaving the ETS alone will not bring stability to the market, signalling that uncertainty around the Government’s priorities is affecting market and investor confidence in the scheme. This flies in the face of National’s claim that the review was causing price fluctuations.

“The advice also foreshadows lower than expected ETS auction revenue, which is a problem for the Government if the intention is to use the money from auction proceeds for tax cuts.

“Emissions pricing is an important tool, but true decarbonisation can only be achieved through measures like improving public transport, incentivising EV uptake, increasing energy efficiency, and supporting clean-tech industries, such as the projects that were funded through GIDI – Government Investment in Decarbonising Industry fund.

“So far all National has done is cancel programmes that would make a difference. It begs the question as to whether they are more concerned with paying for their tax cuts or doing the right thing.

“Climate change is real, whether National like it or not. If they don’t get serious quick about reducing emissions, New Zealand will go backwards – and that will hurt our trade, farmers, industry and people,” Megan Woods said. 

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The Coalition Government has today confirmed it is abandoning first home buyers who are struggling to get ahead, says Labour Finance spokesperson Barbara Edmonds.

“When people are struggling with day-to-day expenses, the Government has decided to give approximately 346 landlords who own at least 200 properties each around $464 million between them,” says Barbara Edmonds.

“The decision shows where the Coalition Government’s priorities are. It’s not lunches in schools, the smokefree generation, or continuing the Cook Strait ferries, it’s mega landlords.

“The assertion that this will bring the cost of rent down is a wolf in sheep’s clothing, there is nothing in today’s announcement that guarantees tenants will have savings passed on to them as a result.

“This tax advantage for the wealthy is not only set to be unfair for tenants, it shuts first home buyers out from getting a foot on the property ladder. Parents and grandparents who hope for their children to own their own home will realise it is a more difficult path to home ownership than ever before.

“This is tax relief for a certain group of people, not for mum and dad investors. The ripples of this decision will be felt for generations.

“The Government has so far taken lunch away from children, money from beneficiaries and hindered first home buyers, choosing instead to give millions to millionaires. This is yet another example of the Coalition Government making decisions that solely benefit the wealthiest New Zealanders.” Barbara Edmonds said.

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The Government has left the health system as an afterthought, announcing half-baked targets at the last minute of their 100-day plan, says Labour Health spokesperson Ayesha Verrall.

“Health Minister Dr Shane Reti has ignored the general practice and primary care, the part of the health system which Kiwis use the most. He has also described the primary care system as broken, but he has no target to see it improve,” Ayesha Verrall says.

“Doctors’ fees remain high, GP enrolments remain untenable, and prescription fees are returning. Those who need healthcare most desperately, and those with complex needs will not get the care they need.

“Emergency department and wait list targets have all been gamed in the past. The previous National Government booted people off wait lists to meet their targets, and we need to see a commitment to transparency so this does not happen again.

“The cancer treatment target doesn’t address the long wait times patients face for procedures before treatment decisions are made, but sets an easy to achieve target once these are done. Patients will remain bottle necked early on their cancer journey when they’re trying to get biopsies and scans.

“The Coalition Government’s health priorities are all wrong. They’ve brought back smoking and their targets are ineffective. We will be holding them to account on their progress, and demanding measures to ensure we get the truth about whether or not these targets are met – and when,” Ayesha Verrall said.