Author: MIL-OSI Publisher

Source: New Zealand Labour Party

So as we gather here for an early conversation about next week’s Budget, it’s also a good time for us to have some hard, and honest, conversations about the crossroads our country finds itself at.

We’re at a moment that demands honesty. A moment that demands leadership. And above all, a moment that demands hope.

I want to say upfront that paying for your Budget at the expense of women, cutting their chance at fair pay, is the opposite of all of those things.

I think the reaction over the past week has been swift, strong and utterly justified.

Women all over this country rightly felt like pay equity was something they had fought for, in some cases devoting their lives to it. It was hard fought, and we were making progress.

Let’s be clear – this Government is gaslighting all Kiwi women.

Telling them they aren’t cutting women’s pay on one hand, while cancelling 33 active claims representing hundreds of thousands of women with no due process on the other.

Claiming it wasn’t to pay for their Budget, then admitting their changes will see billions slashed from that same Budget.

I think one of the many reasons this is resonating so strongly is because for many Kiwis, the promises they were sold at the last election have turned to dust.

They were told the economy would be stronger. But it’s slower.

They were told the cost of living would come down. But prices have gone up.

They were told families with kids would get an extra $250 a fortnight to help with the cost of living, yet only a handful, if that, are getting it.

They were told a new government would get things moving, and yet building projects have ground to a halt and 13,000 people working in construction lost their jobs.

They were told the country would be united. But it’s more divided than ever.

And at every turn, when people ask ‘why can’t we invest in our schools, in our hospitals, in our future?’ the government is giving them the same answer:

“There’s no alternative.”

Well, let me be clear: there is always an alternative. There are always choices.

And this government is making the wrong ones.

A $3 billion tax break for landlords while cutting funding for pay equity for women.

A rollback of our world-leading smoke-free laws while giving tobacco companies over $200 million in tax breaks.

Borrowing $12 billion for tax cuts while cutting jobs, cutting investment, and cutting hope for future generations.

They are choosing austerity. Nicola Willis doesn’t like that word, but it is absolutely true. Choosing decline. Choosing division.

But we in Labour are choosing a different path. A better path. A fairer path. One that puts people at the heart of our economy and decency back at the heart of our politics.

Because we’ve done it before, and we can do it again.

There are challenges ahead. Challenges like the rise of artificial intelligence and the changing nature of work that’s going to prompt.

The climate crisis, and the energy transition that’s going to demand.

An ageing population, in need of care and dignity.

The widening gap between rich and poor, between city and region, between young and old.

And the creeping polarisation that seeks to divide us, when what we need most is to come together.

What’s this government’s response now to these challenges?

Deregulate here. Privatise there.

If it moves, sell it. If it breaks, blame someone else.

This is a government more interested in finding someone else to blame than solving the problems facing the country.

They’re trying to solve the challenges of the 21st century with ideas from the 19th.

They have no plan for the future. Just slogans and spreadsheets.

But we do have a plan. A serious, credible, ambitious plan one that is rooted in fairness, decency, and community. One that believes in people. One that backs New Zealand.

Labour is the party that governs for all, not just a few.

Let’s start with the economy—because you can’t build anything if your foundations are crumbling.

The current government loves to repeat the myth that New Zealand is drowning in debt.

Let’s look at the facts. Before COVID-19 arrived, our net core Crown debt was around 18%. After the pandemic, it peaked at 40%. That’s an increase—but it’s broadly in line with what National borrowed during the Global Financial Crisis, when they increased debt by 20%.

And if you include our assetts—like the New Zealand Super Fund—our net debt falls closer to 25%. That’s still one of the lowest levels in the developed world.

You wouldn’t sell your house because of a mortgage you can easily manage. And we shouldn’t sell our public assets because of debt that’s low by international standards.

And net debt isn’t the full story either. The government’s net worth more than doubled over the past decade —from $81 billion in 2014 to $191 billion in 2023.

We need a more mature conversation about government debt and assets than the one that we are having at the moment.

Borrowing more money to support a higher number of people on unemployment benefits because you’ve slashed government investment in areas like infrastructure and housing simply isn’t sustainable.

Now is exactly the time for government to make the investments we need in infrastructure, housing, health, and our environment so we are creating jobs and get New Zealand moving again.

Anchor projects funded by government have helped us get through major economic shocks before, like the rollout of broadband during the GFC. They create jobs, stimulate the economy, and leave a positive legacy for the future.

Yet all we’ve seen from this government so far is big talk about a pipeline of future projects that’s yet to eventuate. In fact, the opposite has happened. They spent less last year than the year before.

All the big talk about infrastructure is actually resulting in less investment in it.

Talking about economic growth without actually having a plan to deliver it just doesn’t cut it.

Labour will get New Zealand back to work, just as we’ve done before.

We didn’t get everything right in government, but let’s put a few facts on the table.

GDP per person grew by $18,000 under the last Labour government—more than under either the Clark or Key governments, despite the fact we were in office for 3 years less than both of those predecessor governments.

And wages? Under Bolger and Shipley, ordinary hourly pay grew by $3.30 over nine years. Under Clark, $7.22. Under Key and English, $6.29. Under Ardern and Hipkins? $9.98.

We grew the economy faster. We lifted wages faster. We created more jobs. Unemployment was lower.

So when the government tells you there is no alternative to cuts—don’t believe it. There is.

But it’s not just about numbers. It’s about values.

If we are genuinely going to turn things around, and provide New Zealanders with hope and the opportunity of a better future, this year’s Budget will need to do three things.

First, it will need to properly fund our frontline public services like health, education, aged care and police.

National promised New Zealanders before the election frontline public services wouldn’t be cut, yet hiring freezes in health, cuts to specialist teachers, and cruel cuts to disability support all serve as vivid examples that just wasn’t true.

Second, it will need to provide a credible answer to how the government is going to fund all of its promises, and that should not be at the expense of working New Zealand women.

They’ve committing billions in infrastructure investment, for example, but still haven’t said how they will pay for it all.

Third, they need to show they have a plan to invest in our future. To rebuild our ageing schools, hospitals, public homes and infrastructure. To create jobs, upskill our workers, and raising wages and living standards.

Because fundamentally, good economic management is about people. Shifting numbers around on a page while making life harder for everyday working Kiwis is not a sign of success.

How can we look our kids in the eye when we give $3 billion tax break to landlords—while cutting funding for food banks?

How can we justify increasing returns for landlords while we cut the pay of those who clean our hospitals and protect our schools?

We can’t. We won’t and we shouldn’t.

Labour is not anti-wealth. We are anti-poverty. And we are pro-opportunity—for everyone.

We believe in a fair tax system, and you’ll hear more from us on that soon. Not to punish success, but to ask those who have benefitted most to contribute their fair share—to the schools that taught them, the roads that connect them, and the hospitals that care for their families.

Because you can’t build a strong economy on a weak society.

We want to build a country where our kids don’t feel they have to leave New Zealand to build a life for themselves.

Where our elders can live with dignity.

Where no child goes hungry.

Where our businesses thrive.

Where being a nurse, a teacher, or a farmer isn’t a path to burnout—but a path to pride.

We want New Zealand to be a place where our best and brightest don’t just want to stay—but they can stay. Because there is opportunity here. Hope here. A future here.

We know the future will test us. Artificial intelligence is going to change how we work. Climate change is going to challenge how we live. New technologies will transform jobs and our industries.

But these aren’t reasons to fear the future. They are reasons to shape it.

And that’s exactly what Labour will do.

We will invest in green energy and the industries of tomorrow.

We will reform our education system so that we prepare young people for the jobs of the future—not the jobs of the 19th century.

We will make sure that new technologies benefit everyone, not just the few.

We will build homes—not sell them off.

We will protect our environment—not carve it up and privatise it.

And need to focus on uniting this country—not driving division.

Because diversity is not a weakness. It is our greatest strength.

Whether you are Māori, Pākehā, Pasifika, Asian, or new to this land—you are all Kiwis.

Whether you’re a nurse in Palmerston North, a teacher in Ōtaki, a small business owner in Timaru, a cleaner in South Auckland, a builder in Rotorua, or a farmer in Wairoa – your contribution matters.

Whether you’re young or old, rich or poor, gay or straight or transgender, Labour sees you. Labour hears you. Labour is fighting for you.

Because what unites us is far greater than what divides us.

We are a nation of workers and dreamers, of creators and carers.

We believe in fairness. In decency. In community.

And we believe the role of government is not to sit on the sidelines—it’s to step up, to help, to serve.

This government is making different choices. Choosing a lucky few, over the rest of us.

And those choices show us, more than anything, what kind of country this government wants to build.

But I ask you: is that the country we want?

A broken health system.

Children going to school hungry.

People sleeping in cars.

And a generation—our kids—growing up believing they may never own a home, never raise a family, never build a future here.

Or do we want a New Zealand where everyone gets a fair go?

Where the dignity of work is restored, the promise of opportunity renewed, and the bonds of community rebuilt?

We’re not here to manage decline. We are here to build the future.

A future where prosperity is shared.

Where no one is left behind.

Where we choose hope over fear.

Where we say to the next generation: yes—you can dream here. You can build here. You can stay here.

We’ve done it before.

And with your support, we’ll do it again.

Let’s build a better way. Together.

Kia kaha. Kia māia. Kia manawanui.

Thank you.

Source: New Zealand Labour Party