Labour's Chris Hipkins calls Greens' budget ‘huge spend-up', ‘unrealistic' – but agrees with some elements
'If they will not rule it out, they are saying they are prepared to govern like a circus,' she said.
'That is almost a Soviet manifesto in terms of the confiscation of wealth, income and business that it promotes. For Labour not to rule it out, is a real sign of how far they have departed from economic common sense. [Former Labour Finance Minister Sir] Michael Cullen would turn in his grave to see Labour even consider policies this radical and this stupid.'
But asked again on Monday evening whether there were any aspects he was now willing to rule in or out, Hipkins told the Herald that he believed 'as a package, it was unrealistic'.
'There are many elements of it on the surface I would look at and say, 'look, I agree with that on the surface of it', but I think putting them all together in such a huge spend-up like that is unrealistic,' he said.
Hipkins refused to say what specific aspects he agreed with.
'We will set out our policy before the election what we would do as a government. The Greens are welcome to have their own views, but I think we also have to be reasonable that I don't think you can responsibly make massive changes like that in such a short space of time.'
He said the plan included a lot more than just taxes.
'There was a lot of spending commitments in there as well,' Hipkins said.
Among the proposals from the Greens is reinstating the 10-year bright-line test, banning interest deductions for residential property, raising the companies tax, bringing in a new income tax rate, doubling mining royalties and taxing private jets.
The party's overhaul of the tax system is expected to generate nearly $89b, the vast bulk of which comes from a wealth tax. That would see individual net wealth over $2 million taxed at a rate of 2.5%, with 1.5% on assets in private trusts to prevent tax avoidance.
The revenue would help fund free GP and nurse visits nationwide, free dental care, community care clinics in high-need areas like South Auckland, an expansion of 20-hours free childcare, an income guarantee for students and the unemployed and several other policies.
The party also promises significant borrowings for investment not funded by taxation. The borrowings would take net core Crown debt to 53.8% of GDP by the end of the decade. In 2019, Treasury said debt levels below 50-60% of GDP were prudent for New Zealand and warned that higher debt would make it more challenging to borrow during economic shocks such as earthquakes.
'This is a budget for a country that belongs to and works for New Zealanders,' Green Party co-leader Chlöe Swarbrick said.
'We believe in fairness and common sense. A Green government will rapidly reduce emissions, reduce the cost of living and improve our quality of life.'
Greens co-leader Marama Davidson said her party had given Labour a 'heads-up' about the plan but 'we didn't go into detail'.
They hadn't had any conversations with Labour about what policies it might accept, Davidson said.
'We know it is the people who have the power to choose this plan. We know it is going to be hard. We know we are breaking some awesome ground here in putting out a Green budget that shows we can actually take care of everyone and that is why it is important we affirm that power of the people in getting out across communities to talk about that.'
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