Parliament will return for the first time since before the election next week, with the听first piece of legislation before the House to be a bill designed to refocus the Reserve Bank on reducing inflation.听
This is the first legislative item on the Government鈥檚 100-day plan, announced by听Prime Minister Christopher Luxon听in his first post-Cabinet press conference yesterday. Luxon described the plan as 鈥渁mbitious鈥.听
鈥淔rankly that is because we are ambitious for New Zealand,鈥 he said.听
The Labour Government had given the bank a听dual mandate to focus on both maximum sustainable employment and keeping inflation between 1-3 per cent. National has alleged this had distracted the bank from a strict focus on inflation. In reality, the bank has itself admitted that its actions would have been much the same with or without the employment mandate.听
The 100-day plan includes promises to deliver on key, large promises from the new Government. The Labour Government鈥檚 two massive RMA reform laws will be repealed, and the old RMA reinstated before Christmas. Also destined for the bin are Labour鈥檚 Auckland light rail scheme, Government participation in Let鈥檚 Get Wellington Moving, the Lake Onslow pumped hydro scheme, fuel tax hikes, fair pay agreements, and the clean car discount (or 鈥渦te tax鈥).听
Things like repealing the Auckland regional fuel tax, and Labour鈥檚 Three Waters scheme will take longer, with National pledging only to introduce legislation to get rid of those policies in the first 100 days, rather than promising to repeal them outright. This is understandable, given the tight timeframe, which includes the Christmas break.听
Leader of the House Chris Bishop said the House would begin sitting next week, and each of the remaining weeks before Christmas. He said the ball was in Labour鈥檚 court as to when Parliament would rise on the final week of the year. Parliament traditionally adjourns on the Wednesday of the final week of the year, but the听Herald听understands National wants to run right until Friday, December 22.听
鈥淭he exact time the House will lift will be over to the Opposition, and we will see how we go,鈥 Bishop said.听
Peters鈥 comments about the Public Interest Journalism Fund and false claims media had been bribed, Luxon refused to condemn them. He said that he and National had not agreed with the fund either.听
He said Peters鈥 comments were 鈥渘ot the way I would have expressed it鈥 but that he was 鈥渇rustrated鈥 by the fund as well.听
Luxon said he thought it had led to perceptions of bias 鈥渞ightly or wrongly鈥.听
He thought Peters鈥 comments to RNZ and TVNZ around their use of te reo M膩ori were not directions.听
Asked about Hipkins鈥 comments today that Luxon needed to 鈥渞ein in鈥 Peters, Luxon said he didn鈥檛 listen to Hipkins.听
鈥淗e鈥檚 a desperate man at the moment.鈥听
Labour has a big day of its own on Thursday, when leader Chris Hipkins has said he will announce Labour鈥檚 refreshed line-up. Unlike in Government, when only ministers have portfolios, Labour will now give all of its MPs policy portfolios.听
Observers cocked an eyebrow at some of the measures on the 100-day list, which included a governmental double-tapping of schemes that had already been killed by the previous Government. The plan included a听NZ First promise to stop work on He Puapua, a report that was finished and delivered to the Labour Government in its first term as part of research on implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).听 听
He Puapua was written for the Government when Peters was last in office, though he now alleges Labour hid it from him. Work stopped on the report after it was delivered to ministers. M膩ori Development Minister Willie Jackson was tasked with implementing the Government鈥檚 response to UNDRIP, but he stopped work on that prior to Dame Jacinda Ardern leaving office.听
The plan also says National will scrap Labour鈥檚 prison population reduction target, something former Corrections Minister Kelvin Davis himself scrapped on the campaign.听
On the campaign, National launched its party鈥檚 100-day plan saying New Zealanders had 鈥渨aited six long years鈥 for a Government that 鈥渇ocuses on what matters to them鈥. However, the plan National has delivered in Government includes culture war-derived diversions on the likes of lodging a reservation against adopting amendments to WHO health regulations鈥. This must be done in the next two days, making it one of the most urgent of the actions in the plan - ahead of restoring the Reserve Bank鈥檚 single mandate.听
Green Party co-leader Marama Davidson described the plan as 鈥渧isionless, and harmful grab bag of policies鈥. Photo / Sylvie Whinray听
Green Party co-leader Marama Davidson described the plan as a 鈥渧isionless and harmful grab bag of policies鈥.听
鈥淭his is not a serious Government. People deserve a Government that is serious about addressing the challenges we face right now,鈥 she said.听
One of Davidson鈥檚 MPs, Chl枚e Swarbrick, is trying to get National to make good on some of its tough talk in opposition.听
She wrote to the new Finance Minister Nicola Willis on Wednesday, asking her to release the 鈥渕odelling and assumptions鈥 behind its housing policies, particularly a plan to allow landlords to deduct interest costs from their tax bills, which could cost between $2.1 billion and $3b.听
Swarbrick also wants the Government to publish the 鈥渄istributional impacts鈥 of the decision, showing how it affects wealthy and poor. National has said the plan would put 鈥渄ownward pressure鈥 on rents, giving renters some benefit, but the party has never said it would reduce rents. The policy was designed to put a lid on house price rises by making it more costly for investors to borrow money and acquire property.听
In opposition, Swarbrick and Willis forged a bipartisan friendship of sorts on the Finance and Expenditure Committee, where they pressed the Labour Government and the Reserve Bank to be more transparent about its forecasting and the effect its monetary policy of low-interest rates and digital money printing was having on households, both owners and renters alike.听
鈥淭hroughout 2021, I was grateful that National under your committee leadership voted consistently each week to back my motion for an inquiry into house price forecasting assumptions made by RBNZ [Reserve Bank] and Treasury, as impacted by monetary and fiscal policy.听
鈥淲hen we had hearings with the governor and minister respectively, I recall you also joined me in raising the alarm about the 鈥榙istributional impacts鈥,鈥 Swarbrick said, before quoting Willis鈥 own words back to her.听
鈥淭hese decisions impact all of us - not only Kiwis paying a mortgage but savers, workers and potential home-buyers too. If these decisions are being based on inaccurate assumptions, then it鈥檚 right that we ask more questions,鈥 Willis said at the time.听
The letter was apposite, landing the day the Reserve Bank forecast for the first time since the crash that house prices are on track to rise to just above their Covid-bubble peak. The forecast did not take into account the new Government鈥檚 plan to reintroduce interest deductions and to significantly scale back Labour鈥檚 medium-density residential standards, which have enabled cities to zone for far more house building.听
Comparing National鈥檚 100-day Plan with the Government鈥檚 100-day Plan听
Tweaked:听
Start reducing public sector expenditure, including consultant and contractor expenditure.听
National鈥檚 plan included for public sector CEs to 鈥榬eport on current spending within 100 days鈥.听
Introduce legislation to extend eligibility to offence-based rehabilitation programmes to remand prisoners.听
This used to say simply rehabilitation programmes听
Take policy decisions to amend the Overseas Investment Act 2005 to make it easier for build-to-rent housing to be developed in New Zealand.听
this used to say simply to 鈥榓mend the OIA鈥 not just to take policy decisions听
Gone:听
Start reducing public sector expenditure by 6.5% on average by requiring Chief Executives to identify back-office spending not critical to frontline services.听
Establish a permanent Rural Regulation Review Panel to assess all regulations affecting the primary sector and propose solutions to cut red tape.听
New:听
- Stop work on Industry Transformation Plans.
- Start work to improve the quality of regulation.
- Begin to cease implementation of new Significant Natural Areas and seek advice on operation of the areas.
- Abolish the previous Government鈥檚 prisoner reduction target.
- Begin to repeal and replace Part 6 of the Arms Act 1983 relating to clubs and ranges.
- Stop all work on He Puapua.
- By 1 December 2023, lodge a reservation against adopting amendments to WHO health regulations to allow the government to consider these against a 鈥渘ational interest test鈥.
- Begin work on delivering better public services and strengthening democracy.
- Repeal amendments to the Smokefree Environments and Regulated Products Act 1990 and regulations
- Allow the sale of cold medication containing pseudoephedrine
- Begin work to repeal the Therapeutics Products Act 2023
Thomas Coughlan is deputy political editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.听
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