Labour’s Chris Hipkins to put ‘affordability’ at the heart of election year decisions

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Source: Radio New Zealand

Labour leader Chris Hipkins has taken aim at the government’s cost of living and climate policies in his State of the Nation speech in Auckland.

Hipkins did not announce any new policy in the speech on Monday, repeating his promise that the public would see a “different” Labour to 2023.

“Labour didn’t get everything right last time – and some of you don’t hold back in telling me,” Hipkins told the Auckland Business Chamber audience.

“We tried to do too much, too fast, and we lost our focus.”

But what New Zealanders got instead, he said, was rising costs, job losses, and a shrinking economy.

“I’m not promising perfection. Where we make mistakes, I’ll take responsibility,” he said.

“But I am promising this: a government that puts the cost of living first. A government that partners with business to create jobs and raise wages. A government that invests in our people and backs our potential.”

Wary of Labour’s previous propensity to over-promise, Hipkins said he would put affordability at the heart of all decisions he made, and would expect ministers to do the same.

Chris Hipkins is speaking to the Auckland Business Chamber. RNZ / Marika Khabazi

Hipkins said 2000 New Zealanders were leaving every week because they did not see a future here.

“I see young New Zealanders – smart, hardworking, full of potential – making calculations that no young person should have to do. Do I stay in the country I love? Or do I leave to build the life I’ve worked for?

“It breaks my heart. Because it means we are failing them. Not because they aren’t good enough for New Zealand. But because we haven’t made New Zealand good enough for them.”

Riffing off National’s slogan “Fixing the Basics, Building the Future”, Hipkins said New Zealanders would have a choice between two different futures.

He also called for stronger climate action.

“We can carry on treating each disaster as if it’s an isolated event, clean up and move on. Or we can recognise that the cost of inaction on climate change now far exceeds the cost of action.”

He did not give specifics on climate policy, but said New Zealand had an opportunity to be a “renewable energy superpower” but was instead being locked into a volatile global market.

“We would invest in the industries that cut emissions, build resilience, and create jobs. Because that is how you build a stronger economy. Not in spite of climate action, but because of it.”

Chris Hipkins. RNZ / Marika Khabazi

Hipkins confirmed Labour would oppose the government’s plans to build a new liquefied natural gas terminal, and would not go through with any deal if it entered government before a deal was done.

“We won’t add new charges onto people, like increasing every household’s power bill to pay for a gas import terminal, or tolling the Auckland Harbour Bridge to pay for a new crossing.”

The Infrastructure Commission modelled that tolling the existing bridge and a new Waitemata Crossing could bring in up to $9 billion.

The government has said a toll is something under consideration, but has not confirmed whether it would go ahead with it.

While no new policy was announced, Hipkins repeated Labour’s promises to fund three free GP visits a year, funded through a capital gains tax on investment and commercial property.

Hipkins pushed on energy plans

Hipkins was quizzed on energy policy by Auckland Business Chamber chief executive Simon Bridges (who, as former National leader, described himself as Hipkins’ one-time sparring partner).

Bridges, a former energy minister, agreed that New Zealand should be a renewable superpower, and asked Hipkins how he would tackle the country’s gentailers.

“Like governments, business also operates on social licence,” Hipkins said.

“The energy companies were reporting massive profits, but customers were seeing their bills go up.

“Those things aren’t going to wash with the public.”

Hipkins denied the oil and gas exploration ban, brought in by the previous government, was the reason power prices were as high as they are.

He said the government was asking the right question around how to make power bills cheaper, but had landed on the wrong answer.

“The more we’re reliant on fossil fuels, the more our energy bills are going to increase.”

Labour was the highest-polling party in the most recent RNZ-Reid Research poll, but the coalition would still have the numbers to return to government.

The party has seen two high-profile departures from its Māori caucus, with former Speaker Adrian Rurawhe already bowing out, and former Tāmaki Makaurau MP Peeni Henare also announcing his exit.

MP Peeni Henare has announced he’s leaving politics. RNZ / Samuel Rillstone

Henare will deliver his valedictory on 4 March.

State of the Nation speeches are a chance for party leaders to set out the priorities for the year ahead.

Earlier this year, Luxon confirmed the government would continue to run a tight Budget, and observed a “rupture” in the rules-based system.

Last weekend, ACT leader David Seymour took aim at “bureaucratic” governments that aren’t balancing their books, and confirmed ACT would again campaign on a smaller ministerial executive.

New Zealand First leader Winston Peters is set to deliver his speech in Tauranga in March.

The Greens, which prefer to call their address State of the Planet, are yet to confirm details of a 2026 speech.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

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