Businesses and unions begin 'tug of war' over Hipkins' agenda

Wednesday, 25 January 2023

New Zealand officially has a new Prime Minister

Business owners polled by the Auckland Chamber of Commerce appear divided on whether Prime Minister Chris Hipkins might pursue “a more economic, business-focused agenda”.

A poll by the chamber found just over a third of its members thought that was likely, while an equal number did not and the remainder were unsure.

More than three-quarters said the Government should “focus on the basics” rather than be more transformational, as the poll question framed his choices.

Quizzed on specific policies, the clear majority thought the Government should ditch its Three Waters reforms, the TVNZ-RNZ merger, Fair Pay Agreements which have already become law, and its proposed compulsory unemployment insurance scheme.

Views on Auckland Light Rail were more divided, but also negative.

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Business leaders are trying to drive the Government towards their agenda, sensing a possible vulnerability, CTU chief executive Richard Wagstaff says.

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Chamber chief executive Simon Bridges said businesses had spoken and “the message for the Government is clear”.

“It’s time to focus on the basics that restore business confidence: tackling crime, curbing inflation, reducing the cost of living, and relaxing immigration settings.”

Auckland businesses wanted “stability and certainty”, with 75% of respondents expecting New Zealand to hit a recession this year, he said.

“One of the key things Chris Hipkins must do is inject confidence back into the economy and deliver a business-focused agenda that installs hope for Kiwi business in the face of global economic uncertainty.”

Council of Trade Unions chief executive Richard Wagstaff said there was “tug of war” going on over the new administration's agenda.

“The business community in Auckland is seizing the political moment to try and drive the Government's agenda towards their agenda,” he said.

“This is just a political manoeuvre because they think there is a vulnerability there, I guess.”

Labour would want to refresh its agenda but “mustn’t surrender its DNA”, he said.

The CTU’s view was that the Government had been elected with a strong majority and had a mandate to deliver on a “progressive people-centred agenda”, he said.

Wagstaff noted the Fair Pay Agreement legislation was already in place and said the CTU expected increases to the minimum wage and reforms to the rules surrounding the definition of contractors “because we've got a lot of unfairness in our economy”.

“We will expect to maintain momentum on those things.”

Wagstaff said no-one could wish the country’s “water problem, infrastructure problems or climate change away or ‘park’ them”.

“The deterioration of our water infrastructure isn't parked even if we’d want it to be – you do have to do something,” he said.