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.
(Bloomberg) — 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 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,” 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. 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 demeanor.
Hipkins launched Labour’s campaign yesterday with a pledge to expand free dental care to everyone under the age of 30 if the party wins a third term in office.
Weak Economy
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% 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 last year and is forecast to succumb to another one this year as households reduce spending.
National has promised tax cuts that target families and middle-income households at a cost of NZ$14.6 billion ($8.7 billion). The package would be partly funded by allowing foreigners to buy houses worth more than NZ$2 million and applying a 15% tax on those purchases, partially repealing Labour’s foreign-buyer ban.
Hipkins claims National won’t 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% last year.
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 Luxon on Sunday.
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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 Plc and CEO of Air New Zealand, 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.”
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