Category: Labour Party

National’s campaign is in meltdown as their tax scam is exposed and their Winston Peters gamble has backfired.

“They have introduced chaos into the last week of the campaign by saying they could force a second election rather than work with New Zealand First – after saying for weeks they would work with New Zealand First,” Grant Robertson said.

“This has exposed a serious lack of judgement from Christopher Luxon and we’ve seen in the last 24 hours how chaotic a government he leads would be.

“A second election or a chaotic government relying on Winston Peters would be another knock to our economy just when it’s turning a corner and inflation is coming down.

“This comes just days after National’s tax scam was exposed. It’s the sign of a campaign coming off the rails.

“Christopher Luxon had the chance to rule out Winston Peters and avoid all this months ago. Chris Hipkins had the judgment to do so. Christopher Luxon didn’t. This just shows the risk of Christopher Luxon’s inexperience.

“It’s clear that if he wins, New Zealand will lose.

“Only a party vote for Labour will keep New Zealand moving forward, and deliver the stable Government we need,” said Grant Robertson.

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National will leave ratepayers footing the bill of upgrading critical water services infrastructure to ratepayers and leave already struggling councils with eyewatering costs, says Labour Local Government spokesperson Kieran McAnulty.

“Since 2021, information has been available that shows small districts will have brutal rates increases to continue to meet acceptable standards for water infrastructure,” Kieran McAnulty said.

“National shows no concern that small rural districts will be hit the hardest. The cost of making essential improvements to water treatment plants is still high whether you’re in large metropolitan council or a small rural district. The difference is a small rural district only has a fraction of the population to pay for it, meaning those rural families would be unfairly facing the biggest increase to their household budgets.

“Protozoa barriers, for example, cost tens of millions of dollars to install and maintain, yet some districts in New Zealand only have small populations of ratepayers to carry that burden. To make matters worse, those councils are often at their debt caps so have no choice but to rely on rates to make the unavoidable investment.

“Under National’s unfunded model, those councils will get no help. This is despite National promising them they would. Many of the Mayors I spoke to took National’s promise in good faith. But National has allocated nothing to water services in its fiscal plan.

“New Zealand now has a dedicated water regulator which is enforcing the standards we all expect. The requirement to meet those standards is the basis of the projected investment required in each district. And that adds up to $185 billion over the next 30 years.

“Labour’s Affordable Water Reforms protects ratepayers from those unbearable cost escalations.

“In the Waikato for example, the annual rates bills and water charges could be as high as $7,600 without reform. With a Waikato water services entity in place the cost born by ratepayers will be more like $2,700.

“In the top of the South Island, ratepayers will be staring down bills of just under $7000 each year without reform. With reform that is reduced by half.

“These water service entities will have the focus, expertise and scale to make these investments without crushing small ratepayer populations.

“Unlike National, we refuse to leave these councils and communities alone in facing this.

“One thing is clear this election, If National win, New Zealanders lose,” Kieran McAnulty said.

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Labour will establish a new Anti-Scamming Unit to better protect New Zealanders being targeted by illegal scammers says Labour Commerce and Consumer Affairs spokesperson Duncan Webb.

“Too many New Zealanders are being targeted by criminals seeking to swindle innocent Kiwis out of their money through increasingly complex scams – we want to stamp it out” Duncan Webb said.

“Many victims are amongst our most vulnerable and cross sector support and cooperation is vital to ensure Kiwis are being protected. We have already been working closely with banks in this area for some time. Falling victim to a scam can be catastrophic – especially people lose a large part of their life savings – this can be doubly devastating for our elderly.

“We know that 9 out of 10 New Zealanders were targeted by scams in the last 12 months. Reports show that Kiwis were scammed out of a record $20 million last year alone.

“Labour wants to stop scammers in their tracks, and ensure their victims are being supported and educated to avoid being stung in future.

“The Anti-Scamming Unit will include both government and industry, bringing together the work being done from detection, prevention and education, through to finding and prosecuting criminals.

“Prevention through education is only one way we can support those effected. Part of the Unit’s work will be to clarify the steps banks should take to detect and shut down scams, and where liability for compensation should fall,” Duncan Webb said.

The Unit, made up of a core of 15-20 experts, will sit inside the Financial Markets Authority (FMA) and include support from other agencies such as the Reserve Bank, MBIE and Police. Representatives from banks, telecommunications firms and social media companies will be included in the Unit’s work, as will non-government agencies such as consumer advocates.

“In Government we’ve made good progress, broadening work which prevents and responds to scams. CERT NZ (National Cyber Security Centre) and Police have continued their critical roles at the hard end of security and law enforcement respectively.

“The FMA has increased its activity receiving and investigating complaints, monitoring international activity, publishing warnings and alerts, taking enforcement action and shutting down imposter websites, and running community education sessions.

“This worked meant only 1 in 10 Kiwis fell victim to the scams they faced last year, and small and medium enterprises saw their scamming rates drop from 47% to 34%.

“But there is still more to do – scammers are persistent and continue to get more sophisticated and find more victims and we want it stopped,” Duncan Webb said.

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National Tax Scam revealed: 99 percent of kiwi households won’t get $250 per fortnight. 

“99 percent of Kiwi households won’t get $250 a fortnight despite National’s publicity materials claiming that is what “an average-income family with children” would receive – that’s a lie,” Grant Robertson said.

“There are 1.6 million households in New Zealand. Only 0.18 percent of them will get the $250 that National’s promotional materials claim an “average family” will get.

“National have been scamming New Zealanders about their number one policy in this election and they’re now exposed.

“Christopher Luxon will say anything to get elected and that includes misleading New Zealanders about the size of their tax cuts.

“The reality is for many New Zealanders they get very little under National and the cost to the country is huge.

“This latest scam is in addition to the $2 billion foreign buyers hole, cuts to public services, increased unemployment and higher rates and water bills. Nothing about National’s tax scam adds up.

“It is unprecedented for a major party’s flagship policy to have been so thoroughly discredited in an election campaign.

“Christopher Luxon can’t chopper in John Key to try to sort this shambles out.

“With 10 days until polling closes New Zealanders need to take a closer look at National’s tax scam. It’s a house of cards that is rapidly collapsing.

“The sad thing is that some New Zealanders may have already voted after being tricked into believing National’s lie.

“One thing is clear in this election. If National win, New Zealanders lose,” Grant Robertson said.

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New analysis that warns National’s tax cuts risk pushing Kiwis’ mortgage interest rates higher is further evidence that Christopher Luxon’s plans will actually leave many households worse off, Labour Finance Spokesperson Grant Robertson says.

“Many households with mortgages could be worse off as a result of National’s tax plans if they drive inflation and interest rates even higher as Goldman Sachs believes they could,” Grant Robertson said.

“This is classic National, robbing Peter to pay Paul. Offering a tax cut, but then saddling households with higher inflation and higher interest rates.

“Everyone knows their tax plan doesn’t add up and will result in deep cuts to services New Zealanders rely on. The fact it is inflationary makes it even worse.

The new analysis from Goldman Sachs reported in the Herald today follows economist Cameron Bagrie when he said: “National tax plan is inflationary.” And economists Michael Reddell, Sam Warburton and Nick Goodall have said the policy to lift the foreign buyer ban for houses over $2m will cause greater house price inflation in New Zealand below the $2m mark as well.

“These higher interest rates under National would be on top of the higher rates and water bills New Zealanders will face as a result of National rolling back Labour’s Affordable Water reforms.

“And in Auckland, Mayor Wayne Brown has pointed to a $2 billion hole in the city’s transport budget if National gets elected.

“It would be economically crazy to vote National. Their plans mean higher inflation, higher interest rates, higher council rates and water bills, higher house prices and more foreign buyers pushing Kiwis out of the market due to Christopher Luxon’s desire to sell off $5 billion of Kiwi property to overseas buyers every year. That’s not an economic plan; it’s a recipe for disaster.

“Under Labour the economy is turning a corner. Inflation is coming down, unemployment is low and we have a safe and steady plan for the economy. National’s irresponsible plan puts our recovery at risk, will mean big cuts to public services, and will put big extra costs on households,” Grant Robertson said.

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Labour will task the Remuneration Authority to independently set fair pay rates and allowances for uniformed defence personnel, Labour Defence Spokesperson Andrew Little says.

“Kiwis rely on the New Zealand Defence Force (NZDF) to be there when we need them.

“Our soldiers, sailors and aviators work in difficult and dangerous conditions to keep us safe. From Cyclone Gabrielle and extreme weather events here and in the Pacific, to peacekeeping around the world, our defence personnel deserve fair pay,” Andrew Little said.

The unique nature of military service means commissioned and enlisted defence personnel do not have the same rights to negotiate their pay and conditions as other employees.

“This year the Labour Government delivered the largest pay rise for NZDF personnel in a decade. New recruits and skilled lower ranked service personnel received increases of between $4,000 and $15,000.

“The Remuneration Authority currently sets pay rates for the chiefs of the Defence Force, Air Force, Army and Navy.

“A re-elected Labour Government will expand the Remuneration Authority’s remit to include every commissioned and enlisted NZDF service person.

“It’s only fair the independent mechanism should be extended to all defence personnel. Regular and fair binding determinations by the Remuneration Authority will put an end to the historical practice of NZDF pay lurching between catch-up then stagnation for years at a time.

“Our policy means NZDF personnel will have independent assurance that their pay and allowances are fair and comparable to similar roles in the public and private sectors. It is one way we will restore the value and meaning of military service.

“Labour also takes our responsibilities to properly equip defence personnel to get on with the job seriously. We have rebuilt the NZDF after National relentlessly ran it down.

“Labour’s $4.7 billion capital investment over six years is double what National did in nine. Our defence forces now has new Poseidon aircraft, upgraded frigates and a new vessel protecting our seas, a new Bushmaster vehicle fleet, and new Super Hercules aircraft on the way.

“A re-elected Labour Government will also undertake the first comprehensive review of the Defence Act 1990 in over 30 years. This will ensure the legislation meets the expectations for today’s society, and is fit for the challenges of tomorrow.

“New Zealand needs a modern, well equipped and fairly paid defence force to respond to climate change and geostrategic challenges. Only Labour has the record of committing the investments required to protect New Zealand. A change of government would put that at risk,” Andrew Little said.

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The Labour Party is challenging Christopher Luxon to set out how National will achieve legally set child poverty reduction targets, given his cuts to benefits will see someone looking for a job who has children $50 a week worse off.

“It’s an absolute certainty that the National Party’s tax plan will result in more children living in poverty,” Labour Party Social Development and Employment Spokesperson Carmel Sepuloni said.

“My challenge to Christopher Luxon is to lay out how he intends to achieve the child poverty reduction targets the National Party signed up to, while at the same time cutting the incomes of New Zealand’s poorest families.

“Mr Luxon likes to talk about delivery and outcomes, so tell me this, how will you deliver fewer children living in poverty while cutting their household incomes to pay for your tax cut?

“I agree with former Children’s Commissioner Andrew Becroft when he said indexing benefit increases to average wage increases was “the single biggest step to stop children remaining in poverty.

“So did the then-National Party leader and Children’s Spokesperson – who commended the Government and said it was something National thought was important. Clearly that has changed.

“In a cost of living crisis how can it be that our poorest kids will receive a $50 a week cut to their family incomes, in order to pay for tax cuts for millionaires and property speculators.

“It exposes Christopher Luxon’s real values and who he’s in politics to benefit. If Luxon wins, our children lose.

“I’m proud of the work Labour has done to lift over 77,000 children out of poverty. A National, ACT, New Zealand First coalition of chaos will put those advances at risk and see more kiwi kids grow up poor,” Carmel Sepuloni said.

How much worse off per week will families on benefit be under National’s indexation cuts by 2028?

Labour will assist new retailers to set up business in New Zealand as part of its drive to cut the price of groceries and increase competition.

“We know that it’s tough right now for many people, and the high cost of food isn’t helping,” Commerce and Consumer Affairs spokesperson Duncan Webb said.

“The inquiry we ordered into competition in the grocery business showed the two big companies who control the grocery industry in New Zealand were making excess profits of around $1 million a day.

“We need to go further than we have to date to force the type of competition shoppers overseas experience.

“If we’re returned to Government, Labour will back credible companies wanting to get into or expand into the New Zealand grocery business.

“This could include finance, making sure land is available, regulatory changes, incubating innovation and accelerating competition.

“Healthy, affordable food is essential for Kiwi families. Our reforms have already seen new competitors in the grocery market driving down prices on key products.

“This includes appointing a Grocery Commissioner as watchdog over the supermarket duopoly and stopping the two major retailers tying up the best sites for supermarkets to keep competitors out of the market.

“The behaviour by Sanitarium last week shows why the existing players cannot be trusted to sort the market out. It refused to supply Weetbix to the retailer selling it cheapest – grocery challenger The Warehouse – citing supply shortages. Those claimed shortages don’t appear to be affecting supplies to the big supermarkets.

“Labour is committed to doing everything it can to cut the price of food, including taking the GST off fruit and vegetables. Getting more competition into the market will help even more,” Duncan Webb said.

Actions taken by the Labour Government so far include:

• Introducing a Grocery Code of Conduct imposing stiff fines (the greater of 3% of turnover or $3 million) if they don’t treat suppliers fairly.
• Appointing a Grocery Commissioner.
• Banning restrictive land agreements that locked new entrants out of locations for new supermarkets.
• Making unit pricing mandatory, so it’s easier to compare the prices of different products at the supermarket.
• Requiring major grocery retailers to open wholesale offerings, including home brands, to other grocery retailers so they have direct access to a range of wholesale groceries at competitive prices.

The National Party’s U-turn on water reform has left local councils high and dry and will drive up Kiwi’s rates bills, Labour Party Local Government Spokesperson Kieran McAnulty says.

“The National Party said they’ll repeal

Affordable Water legislation in their first 100 days and step in financially if Councils can’t cover the costs of water infrastructure upgrades. But Friday’s fiscal plan allocated no money to do that,” Kieran McAnulty said.

“National has made no provision of funding for their promised ‘step-ins’ when a Council can’t meet the investment by themselves.

“With no support from Government and no economies of scale from Labour’s affordable water reforms big rates increase are inevitable.

“Government support for local council infrastructure is treated as operational expenditure not capital, so would have needed an allocation in the fiscal plan. There wasn’t one.

“This is a big U-turn from National and explains why they’ve taken down their anti water reforms billboards around the country.

“Councils have been left high and dry and will now have to hike New Zealanders rates bills to cover the $185 billion bill for water infrastructure over the next 30 years.

“On Friday a senior Auckland Council source was reported in the Herald saying water bills could rise by more than 20 per cent.

“In contrast Labour’s plan will save

Aucklanders a lot of money. The establishment of an Auckland and Northland water entity will avoid the doubling of water bills that are projected in Auckland, and balance sheet separation will take pressure off Auckland’s rates bills too.

“National’s ideological opposition to affordable water reform means rate payers could face the worst of all worlds – increased rates, crumbling pipes, unsafe water and no long-term plan to fix things.

“The National Party made promises to ratepayers they cannot keep, and now their gift is rates bills New Zealanders can’t afford.

“This is a broken promise and yet another multi-billion dollar hole in National’s fiscals that will leave New Zealanders worse off.” Kieran McAnulty said.