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In 2023, the National Party’s main campaign messaging was around the economy, and how the Labour-led Government had mismanaged the economy and country, causing high inflation, rising living costs, and increasing crime.
It wasn’t surprising then that the 2024 and 2025 budgets were all about fiscal discipline, a halt to excessive spending, reduced borrowing and “living within our means.”
Tax cuts aside, the Government has, for the most part, managed to present its decision making as fair and reasonable. Too reasonable for some people’s liking. Ruth Richardson argues that Nicola Willis has not gone far or fast enough in restoring New Zealand’s fiscal position, and that the Government is balancing political caution with fiscal repair, instead of making harder and more impactful structural changes.
This week, the Government presented a harder edge as it doubled down on reducing the number of public servants and rearranging parts of New Zealand’s welfare system. Once again, messaging was key. Some of it was good. Some just made the Government look mean.
A change in social housing policy was announced, which aims to balance the support provided for those struggling in social housing with those struggling in private rentals. We absolutely want to make sure those who can look after themselves do so, and those in genuine need are able to access social housing. However getting those in social housing to fit the bill with increased rents to subsidise people in private rentals doesn’t appear to be getting anyone ahead - we’re just asking one disadvantaged group to help another.
There is some interesting thinking around this policy - changing the RMA to allow for an increased supply of long-term, low-rent properties, or properties catering to people with mental health issues or disabilities, so that people can move out of social housing and into private rentals while still getting an accommodation subsidy isn’t a bad idea. If you can pull it off. But Nicola Willis’ flippant comment that social housing tenants had "won the lotto" - which she expressed regret for - reduced the big picture down to a policy that implied the Government reckons you’ve got it too good so are going to kick you out of your home.
This week, Minister for Disability Issues Louise Upston introduced the Disability Support Services Bill to Parliament. While supposedly intended to provide clarity and stability to the system which supports thousands of disabled New Zealanders, it did pretty much the opposite for those who look after a disabled family member by sidestepping a 2025 Supreme Court ruling. The Bill allows the Government to now claim the Crown is not the employer of family carers, those who care for loved ones, sometimes 24/7 and sometimes for their entire lives. It had been a long hard battle for carers to be heard and recognised, and it feels like a recently resolved issue of fairness has been sacrificed.
While people affected by the announcements this week may not naturally vote for the current Government, New Zealanders respond well to a sense of fairness. Regardless of who we vote for, we’re a decent bunch and don’t want to see policy decisions that feel like the final tug of the rug from underneath New Zealanders genuinely in need, at a time when fuel and other costs are increasing.
This doesn’t mean we can’t change systems. This doesn’t mean we can’t find a more efficient, sustainable and fairer means of looking after as many New Zealanders in need as needed. But you don’t have to be or look mean doing it.
Thursday is Budget day. The Finance Minister has reduced the amount of new money the Government is giving themselves for day-to-day spending, and is still working to get the books back in balance and the debt curve bending down. Are changes to the public sector or social welfare going to cut it? Maybe it’s time to also rethink tax cuts, landlord tax incentives, tobacco breaks and many of the other election incentives that get in the way of achieving this.
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