Category: New Zealand Labour Party

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. 

A re-elected Labour Party will continue to tackle discriminations still faced by members of the Rainbow community in areas ranging from surrogacy and adoption to blood donation.

“The Labour Party has a long history of being relentlessly proud and fighting alongside Rainbow whānau for equality and justice, and I will continue that when re-elected,” Labour Leader Chris Hipkins said.

“While other parties are using members of our Rainbow communities to incite fear and division this election, we are laying out our ongoing commitments to progress for our Rainbow whānau.

“All people, including Rainbow communities, deserve to have their rights and dignity upheld, and to live their lives freely just as they are.

“A re-elected Labour Government will modernise adoption and surrogacy laws to make them more accessible and ensure Rainbow people who want to form a family are treated on an equal basis as heterosexual couples. Currently, Rainbow families are required to adopt their own genetic children after a surrogate birth – requiring court orders, interviews, and home visits to determine suitability.

“We will also establish a Rainbow subcategory within New Zealand’s annual refugee quota to support people who are being persecuted because of their sexuality or gender identity to resettle in Aotearoa New Zealand. Rainbow refugees can face additional barriers, exclusion, and discrimination compared to other refugees.

“For blood donations, we will explore the latest evidence regarding Donor Behavioural Criteria alongside advocates, experts, and specialists; particularly the three month stand down period that currently applies for men who have sex with men. Any change will need a strong guarantee of safety, but countries like Canada and Ireland have changed their rules, so we should look at their evidence.

“Labour has relentlessly advocated for Rainbow communities in Government over the last six years. We introduced and passed legislation banning harmful conversion practices, which received near unanimous support. This was a major step towards upholding the rights and dignity of LGBTQIA+ and takatāpui New Zealanders.

“We made it easier for New Zealanders to have birth certificates that reflect how they identify with the changes to the Births, Deaths, Marriages, and Relationship Registration Act. This gives agency to people over their own identity, and makes a real difference for transgender, non-binary, takatāpui and intersex New Zealanders.

“Living fully in your own skin isn’t always easy for any of us at the best of times, and it can be particularly hard for our Rainbow communities. I’m proud of our progress we’ve made to support our Rainbow whānau and the commitments we’re making,” Labour Leader Chris Hipkins said.

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National’s fiscal plan has failed to fill the massive fiscal hole in its dodgy tax scheme, it will mean more cuts to public services, more children being put into poverty and an end to action on climate change.

“National’s fiscal plan was the opportunity for Nicola Willis to acknowledge what almost every commentator is saying: National’s tax promises don’t add up. Instead, she has doubled down on the $2 billion hole in her foreign buyer plan and is using it to prop up the overall fiscal plan,” Labour Finance spokesperson Grant Robertson said.

“This means even deeper cuts to public services which will inevitably extend into areas like Health, Education and Housing.

“To make matters worse, National have tried to make their numbers add up by cutting benefits to the tune of $2 billion. This will push more children into poverty.

“The Children’s Commissioner said that indexing benefits to wage growth as Labour has done was the best thing a Government could do to reduce child poverty. The inverse is true; the worst thing that National could do is take that away, and today they have done that.

“In a cost-of-living crisis it is morally wrong to put more kids in poverty to pay for the tax cuts of millionaires and property speculators.

“Christopher Luxon’s plan takes even more from people dealing with cost-of-living pressures with free prescriptions and access cheaper public transport fares gone. People will also miss out on free dental under National.

“National’s plan also means an end to funding for climate action. They are using the funding needed to help reduce emissions to prop up their flailing tax cuts promises. Future generations of New Zealanders need so much better than that.

“The big winners today were the wealthiest Kiwis and property investors, who would get hundreds of millions of dollars in tax cuts under National at the expense of investment in health, education and social housing.

“This is highlighted by the fact National are proposing an ongoing tax cut for property investors every year and won’t build any new social housing beyond 2025. If these are the values Christopher Luxon wants to run this country with then Kiwis will see that for what it is: for the few, not the many.

“We will now go through National’s numbers with a fine toothcomb, given their track record of creating fiscal holes. There is a strong feeling of smoke and mirrors already.

“National’s so-called ‘buffer’ has actually been made to look bigger by including an additional year of Budget allowances than Labour’s Fiscal Plan. Using their approach, the “buffer” – or remaining unallocated money – is actually smaller than the amount of money Labour will have available to meet cost pressures in the coming term of Government.

“New Zealanders deserve better from Christopher Luxon and Nicola Willis than saying ‘trust us, we know numbers’. Christopher Luxon is showing a level of arrogance not seen in New Zealand politics for generations. It’s like Eddie Jones saying, ‘I know rugby so I will win the World Cup’,” Grant Robertson said.

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Labour’s Social Development Plan will build on the social welfare safety net, rather than strip it back. 

“Our plan will continue to lift children out of poverty, increase incomes, and ensure hard working Kiwis are supported into employment, education and training,” Carmel Sepuloni said.

“We’re committed to progress through a considered, evidence based and future-focused policy platform – one that ensures no one, especially no child, is left behind.

“Labour will ensure low-income Kiwis, like our sole parents who want to work while their kids are at school, continue to keep more of what they earn by indexing abatement thresholds to increases in the minimum wage over the next term.

“For a sole parent this means they can pick up extra part-time work without it affecting their income support.

“Our changes to the in-work tax credit and our investment into employment, education and training pathways, like making Apprenticeship Boost permanent, support Labour’s vision to keep the record momentum of beneficiaries moving into work.

“Our plan is a blueprint for the type of New Zealand we want and a promise to all New Zealanders that the welfare system will treat them with respect and dignity.

“I want New Zealanders to clearly see what is at stake and the difference in what is on offer. A National/Act/NZ First Coalition of Cuts will cut taxes and services making it harder for people when times are tough.

“In contrast, Labour will invest in families, lift people’s incomes and provide a ladder of opportunity so everyone can get ahead.

“Our welfare system is not a tick box exercise and is about more than just numbers; it’s about peoples livelihoods.

“That’s why under Labour, I’m proud of our track record of delivery. We’ve made once in a generation increases to main benefits and indexed them to average wages, increased abatement thresholds, and increased thresholds for hardship assistance.

“We’ve also reinstated the Training Incentive Allowance, showing our focus on supporting people receiving a main benefit to participate in higher education and opportunities to upskill.

“Under Labour, we continue to see record numbers of people moving off a benefit and into work: 100,233 in 2022. That’s 25.7 per cent higher than the 79,737 who moved off a benefit and into work in 2017.

“And for the first time in New Zealand’s history, sole parents now receive their full Child Support payments, helping to lift an estimated 6,000 to 14,000 children out of poverty.

“As I’ve said before, there’s more mahi to do, and it doesn’t stop there. That’s why under Labour, if re-elected, we’re going to keep up the momentum and ensure more low-income Kiwis can keep more of what they earn,” Carmel Sepuloni said.

Labour will:

• Maintain and increase the relative value of benefits over time by keeping them indexed to average wages
• Increase abatement thresholds to incentivise people to take up part-time work
• Increase the in-work tax credit by $25 per week, increase abatement thresholds to $50,000 pa, as the first stage in progressing the outcomes of the Working for Families Review
• Protect superannuation by keeping the age at 65 and continue to index Superannuation to wage growth
• Review the impact of relationship status on benefit entitlements
• Make the Apprenticeship Boost Initiative permanent
• Introduce programmes similar to He Poutama Rangatahi for underserved communities, as resourcing allows
• Focus on meeting skills and workforce needs and boosting employment in the regions, working together Regional Skills Leadership Groups (RSLGs).

“Progress is a hard-fought journey, but we have to remember that the progress we’ve made will not be the only thing eroding under a National/Act/NZ First Coalition of Cuts – peoples incomes, child poverty reduction and front line services are all at risk.

“Now is not the time to dial back on the progress we’ve made. With 77,000 fewer children in poverty, we must continue the good work we’ve done to break the cycle, not take an oversimplistic, punitive and narrow-minded approach that has no evidence to say it works,” Carmel Sepuloni said.

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More information on Labour’s record can be found here. 

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After years of criticising the Government on law and order, National have embarrassed themselves by conceding they have no new ideas and instead copied Labour’s Police policy announced three weeks ago, Labour Police spokesperson Ginny Andersen says.

“Labour in Government has backed our Police since day one. We’ve increased constabulary numbers by 1800, meaning that every district in the country has seen more Police,” Ginny Andersen said.

“Earlier this month in Hamilton I announced we would go further, funding 300 additional Police officers over four years, delivering the largest Police service in history.

“Today, Christopher Luxon and Mark Mitchell proved why the public cannot trust National on law and order, because they’re unable to come up with their own policing policy – instead just hitting copy and paste on ours.

“It adds to Mitchell’s embarrassing record on rolling out law and order policies, including zero specific retail crime policies, boot camps for young offenders, which have an 80% failure rate and banning gang patches – another tried and failed policy of the past.

“Mitchell is completely scrambling and realising on day one of voting that beating his chest and repeating headline-grabbing slogans won’t actually reduce crime.

“Given imitation is the greatest form of flattery, I would typically be delighted that National has not only copied our policy but copied the costings that go with them. But frankly, it’s just embarrassing and a disservice to New Zealanders.

“We know that the best way to crack down on crime in our communities is to back our Police to hold offenders to account and break the cycle of crime. Labour is the only party with a proven track record of backing the Police, unlike the previous National Government, which closed Police stations and froze the Police budget.

“Mark Mitchell has also demonstrated a hugely problematic misunderstanding of how Policing in New Zealand works. He says he wants to do away with the ‘policing by consent’, a long-held Policing philosophy used in many countries including New Zealand, Australia, Canada, Ireland and the United Kingdom. The alternative is fear-based policing by force and the loss of trust in the community.

“Mark Mitchell’s attempt to pretend a constitutional principle first established in the 1820s is a policy of Labour’s is staggering misinformation.

“National have finally realised that their failed policies just won’t cut it for New Zealanders. They should go further and adopt all of Labour’s law and order policies if they are serious about protecting our communities and breaking the cycle of crime,” Ginny Andersen said.

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