Government's cost of living speech 'more spin than a front load washing machine'
Photo:
RNZ / Samuel Rillstone
The Labour Party says a cost of living "sermon" by National Party Ministers reeks of desperation and spin.
The government is on the defensive over its efforts to mitigate the cost of living, even as it announces fresh measures to save voters cash.
On Monday, the coalition promised to
legislate a ban on surcharges for contactless card payments
from no later than May 2026.
The Commerce Commission estimates New Zealanders are paying up to $150 million in surcharges each year - including $45 to $65 million in what it considers excessive charges.
Prime Minister Christopher Luxon said it was a worthwhile policy but the "most important" thing the coalition could do was to "double down" on its long term economic plan.
The government spent the first 10 minutes of yesterday's post-Cabinet media briefing outlining actions it had already taken in this plan: tax relief in last year's budget, cutting government spending and scrapping plans to increase petrol taxes to name a few.
Finance Minister Nicola Willis stressed these steps did not mean everything was fixed but said the coalition had managed to get the country "back on course" since getting into office.
"We know many people are still doing it tough and the economy is recovering from a protracted downturn. However, we know that the fundamental changes we are making will deliver," she said.
"Economies are like oil tankers. You can't turn them around on a dime, but New Zealand is back on course."
[h ] 'Out of touch' - Hipkins
The latest Ipsos
Issues Monitor
survey saw Labour overtake National as the party New Zealanders consider
most able to handle the cost of living
.
This was despite the Labour Party releasing no substantial new policy since the election.
Labour Party leader Chris Hipkins.
Photo:
RNZ / Mark Papalii
Opposition leader Chris Hipkins was quick to criticise the government's briefing, saying no amount of spin could convince the public they were better off.
"According to the sermon that we just heard from Nicola Willis and Christopher Luxon, New Zealanders just don't understand the genius of their plan.
"Things are supposedly getting better, according to them. I think it shows just how out of touch they are with the reality facing the vast majority of New Zealanders."
Hipkins said there were now 18,000 fewer people working in construction, more people heading over to Australia and higher unemployment rates compared to the last election day.
"No amount of spin from them is going to change the reality that things are getting worse for New Zealanders under their leadership.
"I think we should start calling them Fisher and Paykel, because they've got more spin than a front load washing machine."
Hipkins took aim at the government's move to hike director fees for the 22 Crown-owned entities; in some cases by up to 80 percent.
"Increasing the pay of some of the best paid New Zealanders at a time when the majority of Kiwi families are struggling just to make ends meet shows just how out of touch they are."
Luxon said public sector director fees had gotten "completely out of whack" compared to private sector fees and the government needed to be able to attract good people into public roles.
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Scoop
6 hours ago
- Scoop
HTP Change Aimed At Stopping Smoking
Hon Casey Costello Associate Minister of Health The Government's move to reduce the excise on Heated Tobacco Products (HTPs) is about getting more people to quit smoking, Associate Health Minister Casey Costello said today. 'The Labour Party and some people in RNZ are fixated on tobacco companies,' Ms Costello says. 'What Ayesha Verrall has said about the cost and benefit of this policy is completely untrue. 'We want people to stop smoking, and the contingent liability forecast by Treasury will only happen if a lot of people quit smoking and the Government's revenue from tobacco excise reduces significantly because of this. 'Obviously if that happens it's a good thing for smoking rates and peoples' health. Last year, a change was made to halve the excise duty on heated tobacco products (HTPs) to see if that might encourage cigarette smokers to switch to a less harmful product. There was to be an evaluation of the change after a year, but because of vaping regulation changes, HTP devices were withdrawn from the market for some of the year. HTPs are now back on the market and the review has been extended to July 2027 as there will be more data available. Last year's cabinet paper included preliminary modelling from the Ministry of Health showing 7,200 people quitting smoking in the first two years from the excise change. It also included estimates of the potential costs from reduced revenue from tobacco excise from people no longer smoking, and from the excise reduction on HTPs. These were included in the Budget documents as contingent liabilities to recognise the potential impact on the Government's accounts. 'What Labour and RNZ are saying is incredibly misleading,' Ms Costello says. 'To be absolutely clear, this is no 'tax break' for the industry. 'I said at the time and continue to say that our drive is to stop smoking. We are trying to see if HTPs can play a similar role to vaping and provide an alternative product and way to quit for smokers. 'We've made great progress in reducing smoking rates and with particular groups like young people and most smokers are now long-term and older and we need to try different ways to help them. 'While a full evaluation of this policy is two years away, I have asked the Ministry of Health to ensure that the excise reduction in HTPs continues to be passed on to consumers.' The Ministry of Health has also established an expert advisory group to look at improving the regulatory regime around all nicotine and tobacco products. The group includes representatives from Health Coalition Aotearoa, ASH, Vape Free Kids, Cancer Society, Heart Foundation, Hāpai te Hauora, the Asthma and Respiratory Foundation, Auckland and Otago Universities and other experts and is due to report to the Minister before the end of the year.

RNZ News
11 hours ago
- RNZ News
Graham Bloxham drops out of Wellington mayoral race
Graham Bloxham. Photo: Supplied Wellington mayoral candidate Graham Bloxham has announced he is quitting the race. It appears Bloxham has announced he is quitting before submitting his nomination, which has not appeared on the Wellington City Council website. Bloxham runs the Facebook page WellingtonLive and has faced controversy in recent months after being arrested for failing to stop for police , and being told by the Employment Relations Authority to pay a former employee $30,000 . In a LinkedIn post, Bloxham said he will not be running for the mayor of Wellington. "After much research 'talking to the neighbours cat over the fence', I feel I can do a much better job outside of council." He said his family did not want to deal with personal attacks on him. "I have looked back and tried to imagine what it might look like, and reflected on the impact on my family. Neither want to deal with the personal attacks on their father." Nominations for the mayoralty close midday on Friday. Other candidates include Andrew Little, Ray Chung, Diane Calvert, Karl Tiefenbacher, Rob Goulden, Josh Harford, William Pennywize, Donald McDonald, Alex Baker and Kelvin Hastie. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

RNZ News
12 hours ago
- RNZ News
The Panel with Kathryn Graham and Tim Wilson Part 1
Tonight, on The Panel, Wallace Chapman is joined by panellists Kathryn Graham and Tim Wilson. Starting off, the Panel hears from one of the first jewllers to work with Michael Hill in his first store in Whangarei. They also talk to Jules, a pensioner who is living in her car for the first time after being made homeless and they discuss how Christopher Luxon was booed at a netball game: is it ever OK to boo a politician? To embed this content on your own webpage, cut and paste the following: See terms of use.