WELLINGTON(Reuters) — New Zealand opposition Labour Party leader Chris Hipkins said his party was focused on easing cost-of-living pressures and rebuilding the urban economy ahead of the November 7 general election.
Hipkins, a former prime minister, acknowledged that Labour had been too slow to respond to rising household pressures after the COVID-19 pandemic as voters shifted their attention toward inflation and economic growth.
“COVID had been all-consuming,” Hipkins told Reuters in an interview. “We were too slow to revert back to non-COVID-related good governing.”
What is Labour proposing to ease cost-of-living pressures?
Labour has proposed measures aimed at reducing household expenses, including weekly public transport caps of NZ$20 in large cities and NZ$10 in smaller centres.
The party also plans to provide three free doctors’ visits a year and introduce a programme to support the adoption of solar power.
Hipkins said Labour’s longer-term approach would focus on strengthening urban economies through investment in technology, innovation, renewable energy and research and development.
“The tech revolution that we’re in at the moment has the opportunity to be a source of massive competitive advantage for New Zealand,” Hipkins said, adding that renewable energy could also provide an economic advantage.
Labour’s policy platform includes a proposed New Zealand Future Fund to support high-growth businesses, innovation and infrastructure, as well as measures supporting apprentices and small businesses.
Can Labour return to government after the election?
Labour’s fiscal plan targets an operating surplus by 2029/30 while keeping government spending and revenue at about 33% of gross domestic product once its proposed capital gains tax is introduced.
The current government has criticised Labour over spending during its previous term, arguing that the party contributed to fiscal pressures that later required cost-saving measures.
Hipkins rejected that criticism, saying a Labour government would have reached a surplus earlier than the current government expects.
He also argued that governments sometimes need to increase spending in areas such as preventative healthcare to reduce costs in the longer term.
Opinion polls suggest neither Labour nor the National Party is likely to win enough support to govern alone, making coalition negotiations a key factor in the election.
Since 2023, New Zealand has been governed by a coalition comprising the centre-right National Party, New Zealand First and the right-wing ACT Party.
Hipkins said he expected to remain prime minister if Labour formed the next government and identified Barbara Edmonds as his choice for finance minister.
He said any coalition agreement would need to reflect public support and argued that smaller parties should not be able to force through unpopular policies as a condition for supporting a government.