Key Takeaways:
- The Labour party leader, Chris Hipkins, has accused the Prime Minister, Christopher Luxon, of panicking and throwing one of his senior ministers, Chris Bishop, "under the bus" over housing intensification laws in Auckland.
- The government is considering weakening housing intensification laws, which could lead to a decrease in the number of new homes built in Auckland.
- Hipkins has called on the government to be transparent about their plans and to prioritize growing people’s incomes rather than just increasing the wealth of those at the top.
- The Labour party has promised to restore pay equity, but has not yet said how it would be paid for, with Treasury estimating it would cost close to $13 billion over four years.
- A portfolio reshuffle is looming in the Labour party, with the departures of Duncan Webb and Adrian Rurawhe.
Introduction to the Election Year
The election year has begun, and the Labour party leader, Chris Hipkins, has come out swinging, accusing the Prime Minister, Christopher Luxon, of panicking and throwing one of his senior ministers, Chris Bishop, "under the bus". This accusation comes after Luxon confirmed that the coalition was considering weakening housing intensification laws in Auckland, which could lead to a decrease in the number of new homes built in the city. Hipkins made these comments on Morning Report, ahead of the Labour party’s post-break gathering in West Auckland.
Housing Intensification Laws
The issue of housing intensification laws has been a contentious one, with Chris Bishop, the Housing and RMA Reform Minister, having directed Auckland Council to allow for greater housing and development intensification, particularly around rail stations. Auckland Council responded by approving plans that would allow up to 2 million homes in the city. However, Luxon’s apparent backtrack on this issue has led Hipkins to accuse him of running scared and being willing to throw Bishop under the bus. Luxon 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 changes accordingly.
Reaction from Other Politicians
David Seymour, the deputy prime minister and leader of coalition partner ACT, has expressed concern that intensification would upset people in his electorate of Epsom, the country’s wealthiest, because high-rise buildings might end up "looking into everyone’s backyards and their swing sets and their pools". Hipkins has called on the government to be transparent about their plans and to prioritize growing people’s incomes rather than just increasing the wealth of those at the top. He has also accused the government of not being focused on growing people’s incomes, but rather on increasing the wealth of those at the top.
House Prices and Affordability
House prices have fallen since their peak in 2022, and rents have stabilized, and in some places, fallen, after years of almost unbroken above-inflation rises. Hipkins has said that he wants a "stabilization in house prices… giving New Zealanders a chance for their incomes to catch up". He has also talked up his party’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
The Labour party has promised to restore pay equity, which was gutted under urgency in early 2025, but has not yet said how it would be paid for, with Treasury estimating it would cost close to $13 billion over four years. Hipkins has said that the party will set out a balanced fiscal plan before the election, which will show how they will get New Zealand’s books balanced, something that Finance Minister Nicola Willis has failed to do. He has also accused Willis of failing to balance the books after her unaffordable tax cuts.
Portfolio Reshuffle and Election Preparations
A portfolio reshuffle is looming in the Labour party, with the departures of Duncan Webb and Adrian Rurawhe. Hipkins has said that the party is "in this to win it" and is determined to offer New Zealanders a compelling alternative to the current government. National is meeting in Christchurch, where Luxon is to announce this year’s election date. The election is expected to be a closely contested one, with both parties vying for the votes of New Zealanders.
