Key Takeaways:
- Labour leader Chris Hipkins accuses Prime Minister Christopher Luxon of "panicking" and throwing Housing and RMA Reform Minister Chris Bishop "under the bus" over housing intensification laws
- Luxon’s apparent backtrack on housing intensification laws has sparked concerns about the government’s commitment to addressing the housing crisis
- Hipkins claims that the current government is not focused on growing people’s incomes, but rather increasing the wealth of those at the top
- Labour has promised to restore pay equity, but has not yet revealed how it will be paid for
- A portfolio reshuffle is looming for Labour, with the departures of Duncan Webb and Adrian Rurawhe
Introduction to the Election Year
The election year has begun, and the Labour party is gearing up for a strong campaign. Labour leader Chris Hipkins has accused Prime Minister Christopher Luxon of starting the year by "panicking" and throwing one of his senior ministers, Chris Bishop, "under the bus". This comes after Luxon confirmed that the coalition was considering weakening housing intensification laws in Auckland, a move that Hipkins claims shows Luxon is "running scared" and "willing to throw Chris Bishop under the bus". Hipkins made these comments during an interview with Morning Report, ahead of the party’s post-break gathering in Auckland.
Housing Intensification Laws
The issue of housing intensification laws has been a contentious one, with Chris Bishop directing Auckland Council to allow for greater housing and development intensification, particularly around rail stations. Auckland Council responded by approving zoning plans that would allow up to two million homes in the city. However, Luxon’s apparent backtrack on this issue has sparked concerns about the government’s commitment to addressing the housing crisis. Hipkins claims that Bishop has spent two years working on this plan, and that Luxon’s decision to reconsider it shows a lack of loyalty to his minister. Luxon, on the other hand, has dismissed any talk of a clash with Bishop, saying that they are in regular discussion and that he is simply listening to feedback and making adjustments accordingly.
Economic Priorities
Hipkins also criticized the current government’s economic priorities, claiming that they are not focused on growing people’s incomes, but rather increasing the wealth of those at the top. He pointed out that house prices have fallen since their peak in 2022, and rents have stabilized, but that this is not enough to address the underlying issues of affordability. Hipkins said that he wants to see a "stabilisation in house prices … giving New Zealanders a chance for their incomes to catch up". He also talked up Labour’s capital gains and Future Fund policies, which aim to ensure that people are investing in productive businesses rather than simply buying up all the available houses and forcing first-time buyers out of the market.
Pay Equity and Fiscal Responsibility
Another issue that Hipkins addressed was pay equity, which was a key plank of the previous Labour-led government’s policy. The Equal Pay Amendment Act, which was passed in 2020, was gutted under urgency in early 2025, with Luxon claiming that the changes would save the government "billions" of dollars. Labour has promised to restore pay equity, but has not yet revealed how it will be paid for. Hipkins said that Labour will set out a balanced fiscal plan before the election, which will show how they will get New Zealand’s books balanced. He criticized Finance Minister Nicola Willis for failing to balance the books, despite having two and a half years to do so.
Portfolio Reshuffle and Election Campaign
Finally, Hipkins confirmed that a portfolio reshuffle is looming for Labour, with the departures of Duncan Webb and Adrian Rurawhe. He said that the party is "in this to win it" and is determined to offer New Zealanders a compelling alternative to the current government. With the election date announced, Labour is gearing up for a strong campaign, and Hipkins is confident that they can win. As the election year gets underway, it is clear that housing, economic priorities, and pay equity will be key issues on the campaign trail.
