Chris Hipkins holds a post-Cabinet press conference. Video / Mark Mitchell
The new Prime Minister has tossed a series of policies on the bonfire - and hinted there’s more to come as the Government looks to change its focus in an election year.
Chris Hipkins’ freshly minted Cabinet met yesterday to sign on what he called “an immediate reprioritisation”. He said the torching of policies was unanimously agreed to.
The National Party, however, believes Labour is simply pretending to ditch policies, while Act claims Hipkins’ “policy bonfire” proves Labour’s “failed and disgraced policies”.
The policies Hipkins yesterday axed or delayed included the TVNZ/RNZ media merger, the social insurance scheme, the biofuels mandate and hate speech legislation - and he promised more was on the way.
“They won’t be the last policy changes we’ll be making but they are some of the most substantive,” Hipkins said.
The Green Party is also criticising the Government’s decision to halt progress on hate speech reform and the use of biofuels as Hipkins aims to reduce the cost of living.
Three Waters, which many have suspected could be tossed into the fire, was discussed at Cabinet and it was decided new Local Government Minister Kieran McAnulty would be given a few weeks to seek more feedback before changes were made.
Hipkins’ increase to the minimum wage - up $1.50 to $22.70 per hour - was welcomed by unions but delaying the social insurance scheme until the economy improved was seen as a concern amid speculation New Zealand could enter into a recession.
National leader Christopher Luxon believed New Zealanders should expect to see the policies revived if Labour won this year’s election.
“Chris Hipkins wants Kiwis to think Labour is listening to voters’ concerns about their priorities, but the reality is the Jobs Tax [social insurance scheme] is just being delayed, hate speech legislation is out for more consultation and Three Waters is still happening,” he said.
“This is deeply cynical politics from a Government that has accomplished little in five years and now wants to pretend they’re listening to the public.”
Luxon said Labour was just “getting rid of dumb stuff” that should not have happened in the first place.
Speaking to Newstalk ZB’s Mike Hosking this morning, he said: “What a stupendous waste of money, time and resources. It’s sort of like: ‘Let’s do this, let’s not do this’. And so what’s the last six years been all about?”
Luxon said we are seeing a Government and a new leader that “no one could trust”.
”He’s going to be the new leader - same Labour - you just can’t trust them.”
He called the national insurance scheme “absolute madness” and acknowledged Three Waters was yet to be dealt with, as well as the $29 billion light rail project money that could have gone somewhere else.
”You can’t give a guy credit for getting rid of dumb stuff. This is stuff that shouldn’t have happened - we proposed it from the beginning.
Luxon said Hipkins had not been clear about where he stood on co-governance.
”We’re very clear on Three Waters - got to get those assets back into local control and ownership. That’s where local people can influence it and that’s what they should be doing.”
Asked if Luxon would have increased the minimum wage, he said: “We would’ve done something, but we wouldn’t have done this - or this much. And the reason is pretty simple: On the other side of the equation, someone’s got to pay for it.”
Luxon said the right thing is to grow our economy and back businesses, which he described as the lifeblood of the country.
Greens justice spokeswoman Golriz Ghahraman yesterday expressed her displeasure at the decision to withdraw the Human Rights (Incitement on Ground of Religious Belief) Amendment Bill - known as hate speech legislation - and refer it to the Law Commission.
“So disappointed that Labour has abandoned its commitment to fulfilling the recommendations of the Christchurch Mosque Royal Commission in relation to hate speech law reform,” she said on social media.
“Victims, experts, community groups engaged in good faith and this was found a continued risk. How callous.”
Greens justice spokeswoman Golriz Ghahraman. Photo / Mark Mitchell
Greens transport spokeswoman Julie Anne Genter was also strong in condemning the move to stop the biofuels mandate, which was an integral part of the Government’s plan to reduce emissions.
“[T]he biofuels mandate had been expected to contribute more than half of the total transport reductions the Government had planned to make by 2025.
“It is now incumbent upon Cabinet ministers to immediately find ways to make up for the shortfall.”
Party leaders Marama Davidson and James Shaw were supportive of a focus on lowering the cost of living but voiced their support for “bolder solutions”.
“Too many families are struggling to make ends meet, while those at the top are getting richer, and our planet is under pressure. We need action that works for everyone,” Davidson said.
“We’re pleased to see the Prime Minister announce the minimum wage will be increased, but urge the Government to go further and raise this to the living wage.”
Act party leader David Seymour. Photo / Dean Purcell
Act Party leader David Seymour cited past comments by various Labour ministers about the necessity of the now-binned policies in an effort to highlight their lack of value.
“The reality is that none of these policies worked,” Seymour declared.
“If Labour wanted to look at their work slate, they’ll find more policies they can dump like the clean car standard which taxes tradies to provide discounts for people buying Teslas.”
Taxpayers’ Union executive director Jordan Williams heralded the dropping of the media merger as a win for his right-wing lobby group.
“Our former chairman, a former TVNZ board member, Barrie Saunders, was among the first to ask the fundamental question about what problem the proposed merger intended to solve, and point out the disgraceful process in which this reform was hatched.
“Far from creating a more diverse media landscape, the merger would have served to concentrate power, and erode diversity and trust in media sources.”
The social insurance scheme, which would have supported workers with 80 per cent of their income for up to seven months if they were laid off, made redundant or forced out of work with ill health, would not progress in its current form and would not be revisited until the economy improved.
Instead of the media merger, Radio New Zealand would receive additional funding, which Hipkins estimated could be around $10 million a year. New Zealand on Air would also get a funding boost, which would be available to a “wider range of broadcasters”, Hipkins said.
The obligation for fuel companies to use biofuels was scrapped as it would have increased fuel prices, which Hipkins said he was not willing to do at this time.
The minimum wage increase had been a balancing act, Hipkins conceded, saying analysis from the Ministry of Business, Innovation and Employment suggested it was unlikely to have a significant impact on unemployment because it was broadly in line with existing average wage growth, and the impact of inflation would be “negligible”.
Amid the policy cut, Hipkins announced $5m of support for Auckland businesses hit by the recent flooding.
