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Home / New Zealand

Editorial: Political tussle for diminishing returns

NZ Herald
24 Apr, 2023 05:00 PM3 mins to read

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Prime Minister Chris Hipkins arriving in Brisbane, Australia, on Saturday. Photo / Michael Neilson

Prime Minister Chris Hipkins arriving in Brisbane, Australia, on Saturday. Photo / Michael Neilson

Editorial

EDITORIAL

It would be ironic if the most significant long-term policy change affecting New Zealanders ahead of the election has just happened offshore.

The way politics has been unfolding here, as the country inches closer to October, that might be the case.

Prime Minister Chris Hipkins’ Anzac trip across the Tasman has made news with a bold shift that will have an influence for generations - yet the benefits will be felt by Kiwis living in Australia and it was up to Canberra to make it a reality.

Illustration / Guy Body
Illustration / Guy Body
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While good news of dual citizenship for Kiwis across the Ditch should be welcomed, it does show up the underwhelming shadow election campaign here.

So far, it has involved the Government trying to simplify its approach and burst policy bubbles of negativity. Its rival is mainly offering vague old-school familiarity - back-to-basics education, boot camps, even live animal exports.

The Opposition has invaded traditional Labour territory and the Government has countered on any pledge it considers National could make headway with, such as projects for renewables. Labour and National are in a constricting defensive wrestle over who can hug the other tighter - to prevent their opponent’s advantage.

New Zealand’s challenging outlook requires more ambition and ideas from our politicians.

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Stats NZ data suggests migration into New Zealand is flourishing even as people speculate about whether the brain-drain westward will get bigger. Australia has also been experiencing a surge in migration.

Maybe it has a bit to do with both countries’ political stability, work and lifestyle balance, and performance in doing better at keeping their citizens safe during the pandemic than most other nations.

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More migration will bring benefits but also add to existing pressures on housing and infrastructure. That means more investment in improvements and structural changes to pay for them. And if having a neighbour attractive to Kiwi workers means an outward flow, it’s up to this country to do better to keep them.

This week, the Government gets a chance to signal a new direction on tax reform, a seemingly necessary step if cyclone recovery infrastructure plans, greenhouse gas emissions mitigation and resilience-building goals are to be met over the long haul.

It’s questionable whether the opportunity will be seized.

Tomorrow, Revenue Minister David Parker is due to outline a report into the amount of tax paid by New Zealand’s richest citizens. That will be followed a day later by Hipkins’ first official pre-Budget speech, three weeks out from the main event.

Writing in the Herald, Claire Trevett’s analysis is that Hipkins will rule out a capital gains or wealth tax for the Budget at least.

Arguably, if a policy is clearly outlined and justified, it can pass the public acceptance test, whatever the splash it creates.

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Howls of outrage to sway opinion are guaranteed but, if a major shift is thought to be required, it may be best to take the plunge now, with the Government’s majority, and with months to go before the official campaign. If the election result is a cliffhanger, the chance won’t come afterwards.

Playing it safe with an election in view is probably the more likely path.


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