New Zealand opposition launches bid to unseat Labour government

WELLINGTON - New Zealand’s main opposition National Party launched its bid to unseat the Labour government with a pledge to

reduce inflation and boost the economy,

if it wins the October election.

National leader Christopher Luxon made the commitment as the party officially began its campaign on Sunday in Auckland.

It was one of eight promises on a pledge card he said he would personally guarantee if he becomes prime minister.

“With rampant inflation, record food prices, huge increases in interest rates, high taxes and a shrinking economy, most of us are going backwards,” Mr Luxon told party faithful. “New Zealand should be a country where if you work hard, you can get ahead.”

National leads the Labour Party in opinion polls six weeks out from the Oct 14 vote.

Mr Luxon, a former high-flying businessman who entered Parliament less than three years ago, is up against Prime Minister Chris Hipkins, a seasoned politician with a down-to-earth demeanour. 

Mr Hipkins launched Labour’s campaign on Saturday with a pledge to expand free dental care to everyone under the age of 30 if the party wins a third term in office. 

The election takes place against the backdrop of a cost-of-living crisis and a weak economy, with both main parties claiming they are best placed to manage the recovery.

While off its peak, inflation is still running at 6 per cent and mortgage rates have soared after the central bank raised interest rates rapidly to defuse price pressures. The economy entered a mild recession at the end of 2022 and is forecast to succumb to another one in 2023 as households reduce spending.

National has promised tax cuts that target families and middle-income households at a cost of NZ$14.6 billion (S$11.75 billion).

The package would be partly funded by allowing foreigners to buy houses worth more than NZ$2 million and applying a 15 per cent tax on those purchases, partially repealing Labour’s foreign-buyer ban.

Mr Hipkins claims National will not raise the revenue it expects from house sales to foreigners and will fund the shortfall with deep cuts to public services. 

National, whose campaign slogan is “Get our country back on track”, claims Labour has been profligate during its six years in office and that increased government spending is one of the reasons inflation soared as high as 7.3 per cent in 2022.

Restoring law and order, lifting education outcomes, cutting health waiting times and building infrastructure are among the other commitments on the pledge card issued by Mr Luxon on Sunday.

He said he would “sweep away the culture of excuses, all the inaction and working groups, all the mush that’s holding New Zealand back” and restore the country’s mojo.

Formerly a top executive at consumer goods giant Unilever and chief executive of Air New Zealand, Mr Luxon is using his experience in business as evidence he will deliver better outcomes in government. 

“I’ve spent my whole life sorting things out, solving problems and getting things done,” he said.

“Should I have the immense privilege of becoming prime minister, I am going to dedicate every day that I am in government to making this a better country.” BLOOMBERG