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Dissecting the budget: Liam Hehir & Neale Jones

Dissecting the budget: Liam Hehir & Neale Jones

RNZ News26-05-2025
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RNZ
Neale Jones was Chief of Staff to Labour Leader Jacinda Ardern, and prior to that was Chief of Staff to Andrew Little. He is the director of public affairs firm Capital. He is currently providing PR support for Andrew Little's Campaign for Mayor of Wellington, on a voluntary basis.
Liam Hehir is a Palmerston North lawyer, political commentator and a National Party member
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Christopher Luxon shrugs off polls showing tight electoral race
Christopher Luxon shrugs off polls showing tight electoral race

RNZ News

time39 minutes ago

  • RNZ News

Christopher Luxon shrugs off polls showing tight electoral race

Prime Minister Christopher Luxon has shrugged off two polls showing a tight electoral race , promising to stay the course with the coalition's plan to fix the economy. The Taxpayers' Union-Curia poll on Monday showed Labour overtaking National as the most popular party and no clear path to power for either side. TVNZ's 1News-Verian poll was more forgiving to the coalition parties, returning them to government. But it also saw Luxon sink to just 20 percent as preferred prime minister, a two-year low. On his way into a morning caucus meeting on Tuesday, Luxon told reporters the polls would not be a topic of conversation in the meeting, nor should they be. "No, no, not at all," he said. "I'm not focused on polls or talking about myself. What I'm focused on is New Zealanders and making sure we've got the right long term economic plan in place." Prime Minister Christopher Luxon said the polls would not be a topic at Tuesday's caucus meeting. (File photo) Photo: RNZ / Mark Papalii Luxon said his MPs continued to be provided internal polling through "a regular process" and discussed them "from time to time" in line with "normal practice". Asked whether he was meeting his own high standards, Luxon said the government was dealing with a challenging international environment. "We've inherited a really difficult recession," he said. "It's a very difficult time, but we are very, very clear minded and very, very focused on fixing the economy." Luxon said global confidence had been knocked by the United States' tariff regime but New Zealand had to "power through that". The faltering economy and cost-of-living crisis featured in both polls as key concerns for voters. Recently, the Auckland Chamber of Commerce has advocated a cut to the corporate tax rate, while the Taxpayers' Union is calling for an emergency mid-year Budget. Luxon previously dismissed such calls, and on Tuesday, he maintained the coalition's current focus on manufacturing and construction was the right approach. "We are doing everything we can. If you think about $6 billion worth of infrastructure projects starting before Christmas, that is a lot of jobs, it's a lot of tradies." He also pointed to relief on the horizon with the Reserve Bank expected to deliver further interest rate cuts this year. Speaking on Tuesday morning, Labour leader Chris Hipkins said the polls demonstrated New Zealanders were losing faith in National's ability to deliver on its promises. Labour leader Chris Hipkins. (File photo) Photo: RNZ / Mark Papalii He accepted, however, that Labour had more work to do, given neither poll had returned the party to the Beehive. Asked whether the party's support was helped or hindered by Labour's lack of policy, Hipkins said the government "would desperately love more things to attack". "We'll put further policy out there, but my focus right at the moment is holding the government accountable for their promises." Any comprehensive fiscal plan would have to wait till after next year's Budget, he said, but Labour's tax policy would be released this year. Hipkins said a final decision on tax had yet to be resolved but: "consensus is emerging." He repeatedly refused to give any details, including whether the proposal would be revenue neutral or possible parameters. "I've always said that I don't think the family home should be taxed, but I'm not announcing a policy that we haven't announced." National's campaign chairperson Chris Bishop said it was very easy for Labour to insist life should better when they had no policy solutions to offer themselves. National's campaign chairperson Chris Bishop said the government had to make tough decisions. (File photo) Photo: NZME / LDR "Life's easy when you're able to throw rocks from the side. Actually, we're the ones... in the arena, making the tough decisions across planning, across education, across infrastructure, across red tape, across fiscal policy to get this economy back on track." Bishop said the poll numbers reflected a "tough winter" but stressed that the election was not until next year: "People want the economy to be fixed. And I get that. But there is no silver bullet." He said any talk of replacing Luxon as leader was "just silly". Luxon declined to say whether the caucus would discuss the question of Palestinian statehood on Tuesday, but acknowledged there would be "nuances and differences" within the team. Luxon and Australian Prime Minister Anthony Albanese discussed Palestine during a meeting in Queenstown over the weekend. Photo: RNZ/Katie Todd Foreign Minister Winston Peters on Monday confirmed Cabinet would come to a formal decision in September over whether to recognise a state of Palestine at an upcoming United Nations summit. All three opposition parties have castigated the government for failing to make a decision, pointing out that New Zealand is now out-of-step with its like-minded partners: Australia, Canada, the United Kingdom and France. But Luxon said the complex question needed careful consideration. "It's not a race," Luxon said. "It deserves a serious weighing up of our position, and that's exactly what we're going to do." Luxon declined to say whether he would be comfortable with either coalition partner opting to "agree-to-disagree" on the decision. "I'm not going to get into hypotheticals... It's all very easy to jump to a bumper-sticker outcome or decision and not think through the consequences." Pressed on what conditions could be attached, Luxon said he would not presuppose a position but made clear Hamas would have to release hostages and disarm: "There is absolutely no role in any future Palestinian state for a terrorist organization like Hamas." 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