Prime Minister Chris Hipkins during his post-Cabinet press conference at Parliament, Wellington, on Wednesday. Photo / Mark Mitchell
Prime Minister Chris Hipkins during his post-Cabinet press conference at Parliament, Wellington, on Wednesday. Photo / Mark Mitchell
EDITORIAL
The Prime Minister’s desk has had a tidy up.
Chris Hipkins’ stated goal in removing, stalling or delaying some difficult reforms is to create more room to focus on cost of living issues and the economy - ahead of October’s election.
But that raises new questions: Within that timeframework, what’s now going to be added to that currently minimalist table?
What he doesn’t want to deal with has been confirmed. Still to be revealed is what he does want to do.
Hipkins achieved a number of aims with his summer policy spring clean, most notably to pull the rug from under National on issues it was gaining traction on.
The TVNZ-RNZ media merger and a planned biofuels mandate have gone. Three projects which attracted negative attention - Three Waters, hate speech and an income insurance scheme - have been shifted sideways for now.
Illustration / Rod Emmerson
Three Waters will be reassessed by the new Local Government Minister, the hate speech reforms have been sent to the Law Commission, and the levy scheme to help people laid off which National called a jobs tax is on hold.
The new Prime Minister’s key focus is getting Labour to another term.
Hipkins admitted that the Government’s agenda had become cluttered and the policies hadn’t been communicated adequately. When explanations aren’t clear, opponents can shape the narrative.
Labour’s new leader will clearly scrap for ground rather than cede it. At the moment his changes have given his opponents new openings such as the cost of the media merger process. Hipkins will have to be careful to mark when this phase is over, so as not to be caught defending other policies’ existence.
So far his actions - a Cabinet reshuffle and trip to Canberra - and policy changes have helped him drive the political agenda, maintain his early momentum and keep his opponents reacting to what he’s doing. Any incumbent has the advantage of being able to create news.
Hipkins is also trying to show he’s aware of people’s concerns and prepared to respond: rolling over the fuel tax and road user charge cuts and raising the minimum wage by $1.50 to $22.70 on April 1.
He continues to talk in language that’s inclusive for a wide range of voters, and especially Labour’s core support.
While Hipkins was culling policies that could be election liabilities, US President Joe Biden was giving a combative State of the Union address that was heavily prog-populist and aimed at working families.
He said “no billionaire should pay a lower tax rate than a school teacher or a firefighter”, and bashed drug companies for their charges and energy giants for making windfalls when fuel prices were sky high. He also called out airlines and event ticket outlets for “junk fees”, and tech firms for collecting people’s personal information, especially children online.
President Joe Biden delivers the State of the Union address to a joint session of Congress at the US Capitol. Photo / Patrick Semansky, AP
Biden was able to tout job-making success through investment in projects and urge support for buying domestic products. “We pay for these investments in our future by finally making the wealthiest and the biggest corporations begin to pay their fair share. I’m a capitalist. But just pay your fair share.”
The Democrats have attempted tax reform proposals in recent years. The billionaire tax plan would require at least 20 per cent on households making US$100 million or more a year.
Tax and income inequality and big company profiteering around the world have made the ultra-wealthy harder for conservative parties to politically defend - with all countries facing very expensive, entrenched problems.
During her short stint, British prime minister Liz Truss managed to prove that tax cuts for the wealthy - when not budgeted for and proposed in a time of hardship for most people - was an idea outside conventional political and economic thinking.
This raises the possibility of whether the time is right for Hipkins to consider tax reform, with the high-end asked to contribute more, as part of a new slate of ideas to replace the ones pushed aside.
New plans are important to show that problems are being worked on, and the Government has energy to run the country going forward.
After clearing out his toolbelt, Chippy needs some shiny upgrades.
