Middle NZ: Dropping GST on basics not a handout, it's a helping hand

It's autumn which means harvest time in Hawke's Bay. Now is the time to buy cheap fruit and vegetables and think about freezing some for winter. Photo / NZME

The Prime Minister doesn't think the rising cost of living is a crisis.

It may not be for Jacinda Ardern, but it certainly is for a growing number of people.

I've said it before and I'll say it again, the Government can't fix everything.

However, there is plenty it can do now to ease escalating prices of food, petrol and rent.

First, a rent freeze. It happened in September 2020 but the problem with that was when it was lifted six months later there was a sharp increase in average rents.

As it stands landlords can only increase rents once a year but there's no cap on how much that increase can be.

Perhaps there should be. To be fair to landlords if there was another rent freeze, interest rates would also have to stay the same.

I think people are far worse off now than they were in 2020 and rent costs are crippling families across the country.

Secondly take the tax off petrol. The rising petrol prices are not of our Government's making. That's down to the horrendous war Russia is raging on Ukraine. When you see the terrible images on telly of women and children fleeing their homes it makes our problems pale in significance.

Still, we must think about the impact of rising fuel costs here. The hikes mean rising prices on just about everything you can think of.

Linda Hall is assistant editor at Hawke's Bay Today.

There are things you can do to lessen the impact of petrol prices, such as car-pooling or if you are close enough, biking to work.

But what about food prices? Yes, you can buy in season and cheaper brands but honestly the rise in our food prices is just unbelievable. Again, I say take the GST off fruit and vegetables, dairy and meat.

That would help so many families. We can do without luxuries but bread, milk, butter, vegetables, fruit and meat (even if it's the cheaper cuts) should be affordable to everyone.
It's a quick and easy thing to do.

Unlike the Commerce Commission's market study into supermarkets which concluded competition is "not working well" in the supermarket sector.

This we know.

One of its recommendations is "freeing up land for supermarket development, through changes to planning laws and prohibiting the use of restrictive covenants on land and exclusivity covenants in leases."

That will take years. People are having to decide if they pay their rent or buy food .
Something needs to be done now, before winter sets in and power bills skyrocket.

Again, there are things we can do to help ourselves. One of the best things about living in Hawke's Bay is the abundance of fresh produce and autumn is a great time to take advantage of the harvest.

Pumpkins, feijoas, apples — all produce you can get, if you are lucky — from a friend or a roadside stall.

Think about how our ancestors prepared for winter. Don't waste anything, after you have eaten as many delicious fresh apples as you can, cook the rest and freeze. Same goes for pumpkin and feijoas. In fact, you can freeze raw pumpkin, perfect to throw in a winter casserole.

There are ways we can ease the pain at the till, but the Government really needs to chip in.

Taking GST off the basics is not a handout - it's a helping hand and there are so many people out there that need help now.

Linda Hall is assistant editor at Hawke's Bay Today.