Labour’s economic growth plan

The Labour Party says it would grow the economy, return the books to a surplus by 2029-2030 and make sure hard-working New Zealanders can “get ahead”.

“New Zealand should be a country where hard work gets you somewhere. Where you can get ahead, put down roots and know your kids will have opportunities here,” Labour leader Chris Hipkins says.

He says National’s promise to fix the economy has instead seen a rise in unemployment and struggling businesses.

“Labour will get the books back into shape, but we won’t do it by making life harder for New Zealanders or cutting the services they rely on,” Hipkins says. “You can’t cut your way to growth.”

The party says it would invest in hospitals, schools, infrastructure, skills and businesses that create jobs.

“New Zealand has enormous potential. Our job is to back the people and businesses that can realise it, while leaving the country stronger for the next generation,” Hipkins says.

Labour’s plan includes returning to the original measure of OBEGAL (operating balance before gains and losses) to achieve a surplus by 2029-2030 and reducing net debt towards 20 per cent of GDP.

It would also establish an independent Parliamentary Budget Office, restore the Reserve Bank’s dual mandate and wellbeing reporting.

Core Crown expenditure and revenue would be maintained at around 33 per cent of GDP when the capital gains tax is fully implemented.

“Labour will be responsible with taxpayers’ money, balancing the books and bringing down debt, while giving New Zealand the capacity to invest in its future,” Labour finance and economy spokesperson Barbara Edmonds says.

“Under National unemployment is at an 11-year high, business liquidations are up 71 per cent, homelessness and KiwiSaver hardship withdrawals are at record levels, and public services are under pressure,” she says. “That is not economic success.”