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Home / New Zealand / Politics

Election 2023: Audrey Young - National’s big tax test looms as Government tightens purse strings

Audrey Young
By Audrey Young
Senior Political Correspondent·NZ Herald·
29 Aug, 2023 01:01 AM6 mins to read

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Immigration New Zealand raids six properties in fraud investigation; the Government cuts back on consultants and contractors; job listings fall but applications are higher than ever. Video / NZ Herald
Audrey Young
Opinion by Audrey Young
Audrey Young, Senior Political Correspondent at the New Zealand Herald based at Parliament, specialises in writing about politics and power.
Learn more

This is a transcript of Audrey Young’s subscriber-only Premium Politics newsletter. To sign up, click on your profile at nzherald.co.nz and select ‘Newsletters’. For a step-by-step guide, click here.

OPINION

Welcome to the Politics Briefing in what is shaping up to be a “show me the money” week.

First Labour set out its plans for $4 billion of savings in forward spending, otherwise known as cuts and reprioritisations. And shadow finance minister Nicola Willis, who said the cuts were “too little, too late”, will reveal National’s tax policy on Wednesday.

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Finance Minister Grant Robertson says with the May accounts (published last month) coming up $2.2b short in incoming tax, the Government has a revenue problem, not a spending problem. The pressure is on with Treasury publishing the Pre-Election Fiscal Update two weeks from today, and Robertson has found $4b in cuts to programmes and future Budget allowances over four years. He is hoping that will be enough to keep the return to surplus within the 2025 - 2026 forecast in the Budget.

But Robertson’s moves could also place constraints on Willis’ alternative budget. As deputy political editor Thomas Coughlan puts it so colourfully: “In the Tom and Jerry show that is Grant vs Nicola, it was as if Robertson laid out hundreds of marbles upon which Willis may meet a sticky end.”

Disruption and democracy

It may be one of the few times Chris Hipkins and Christopher Luxon agree during this campaign, but they’re on the same page about the supporters of Brian Tamaki and Sue Grey’s Freedoms NZ party interfering in the rights of others to participate in the campaign. Luxon’s press conference yesterday was hijacked by a heckler leaning over a fence, and it turns out he is a repeat offender. He was part of the group that forced Hipkins to cut short his visit to the Ōtara markets 10 days ago.

As Hipkins said at his post-Cabinet press conference yesterday: “Christopher Luxon is absolutely entitled to hold a press conference. He’s entitled to share his views with the New Zealand public, and the New Zealand public are entitled to hear those views as well. Same with me; same with every other political party leader.”

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Coalitions and confusion

Winston Peters at the NZ First campaign launch in July. Photo / Alex Burton
Winston Peters at the NZ First campaign launch in July. Photo / Alex Burton

National has ruled out going into any governing arrangement with Te Pāti Māori and, as of Sunday, Labour has officially ruled out New Zealand First. That was making a virtue of necessity because NZ First leader Winston Peters had already ruled out Labour in November last year during an interview with me. So it was bewildering to hear Peters being interviewed by Corin Dann on RNZ yesterday and seeming to avoid the previous statement ruling out Labour.

“No matter what you think, you’ve got to put your pride aside and your past aside and try and form a stable government,” Peters said.

He must have got the message that he had not been clear, and later issued a definitive statement: “New Zealand First will not be forming any form of coalition, confidence and supply, or any other form of support with the Labour Party. Full stop.”

Holy moly, there’s more

Act leader David Seymour sparked outrage when he suggested Nelson Mandela would be campaigning for Act if he were alive today. He also sparked something that has caught on ...

Taitoa Wihone tweet.
Taitoa Wihone tweet.

Now no deal

With Act consistently polling so far above the 5 per cent threshold, there is no imperative for National to help Act leader David Seymour win Epsom as it has done in the past. That means National’s Paul Goldsmith can be let off the leash to try to win the seat as well as campaigning for the party vote. It is safe to assume that Goldsmith will be more of an underdog than a rottweiler in the seat.

New name

The Māori Party was first registered almost 20 years ago but, last month, the party formally changed its registered name with the Electoral Commission to Te Pāti Māori.

Quote unquote

“Labour’s focus in this election won’t be an imported culture war, but fighting an economic war against inflation and inequality” - PM and Labour leader Chris Hipkins.

Brickbat

Karl Mokaraka interrupts Christopher Luxon's press conference. Photo / Dean Purcell
Karl Mokaraka interrupts Christopher Luxon's press conference. Photo / Dean Purcell

Goes to Karl Mokaraka, the Vision/Freedoms NZ heckler and candidate who won’t give others a fair go on the campaign trail.

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Bouquet

Luxon kept his cool in the face of provocation. Photo / Mark Mitchell
Luxon kept his cool in the face of provocation. Photo / Mark Mitchell

Goes to Christopher Luxon, who not only kept his manners in the face of provocation from a heckler, but was able to contradict claims he never visits Ōtara.

Latest political news

- Prime Minister Chris Hipkins and Finance Minister Grant Robertson have announced almost $4 billion worth of public service savings as clouds gather over the New Zealand economy.

- The National Party will release its long-awaited tax plan tomorrow, leader Christopher Luxon and Deputy Leader Nicola Willis have confirmed.

- National Party leader Christopher Luxon was taking questions from reporters at a public meeting when he was interrupted by a heckler.

- Christopher Luxon has responded to Chris Hipkins ruling out a coalition deal with NZ First, saying it was sad to see the Prime Minister getting “so personal and so negative” on the campaign trail.

- Prime Minister and Labour leader Chris Hipkins has ruled out working with NZ First and Winston Peters after the election, describing Peters as a “force of instability and chaos”.

- Nelson Mandela’s grandson has rubbished David Seymour’s claim that the anti-apartheid activist would have campaigned for the Act Party if he were alive today.

- OPINION: Air NZ’s ‘staggering’ profit turnaround wouldn’t have been possible without taxpayer support and an exploitative new fare structure, writes Simon Wilson.

- National says it would make changes to the electronic monitoring system in the wake of a “damning” internal police report.

- ANALYSIS: Derek Cheng explores the latest Ministry of Education data, the grim future it paints, and what is being proposed as the election looms.

- Minister for Māori Development Willie Jackson has defended the appointment of Jennifer Ward-Lealand to the Māori Language Commission.

- People fleeing Russia’s illegal war with Ukraine will have a new pathway to residency in New Zealand, the Government has announced.

Audrey Young is the New Zealand Herald’s senior political correspondent. She was named Political Journalist of the Year at the Voyager Media Awards in 2023, 2020 and 2018.

For more political news and views, listen to On the Tiles, the Herald’s politics podcast.

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