Rookie NZ First minister still exploring tobacco tax cuts despite PM rule out

Friday, 2 February 2024

Prime Minister Christopher Luxon had a very different response yesterday to one he had earlier in the week when asked about seeking assurances coalition parties hadn't received donations from tobacco companies.

Tova O’Brien is Stuff’s Chief Political Correspondent and host of the political podcast, Tova, which is back with a special episode from Waitangi on Waitangi Day.

ANALYSIS: In politics flip-flops are often considered a fail but actually, if politicians flip or flop following public pressure or because it’s the right thing to do, that should be chalked up as a win.

Such was the case with the prime minister this week over whether he’d sought assurances from his ministers that they hadn’t received donations from big tobacco companies.

On Tuesday when asked by Stuff, Christopher Luxon told us, “I haven’t asked those questions”, because, “well, it’s just not relevant”.

Come Thursday, it was now relevant. “My office spoke to the offices of the other parties to confirm … and those parties both came back to say that they haven't received their donations from tobacco companies.”

Prime Minister Christopher Luxon visited Browns Bay School on Thursday before a press conference that was dominated by his government’s links to big tobacco.

Luxon told Stuff that even though other parties’ donations are not his responsibility, “I did ask for clarification, after our conversation”.

Between Tuesday and Thursday there was also, of course, a helluva lot of pressure on the prime minister and his associate minister of health, Casey Costello.

RNZ revealed she’d sought advice about freezing tobacco tax hikes - something we’ve done as a country, in part, to disincentivise smoking - and then Costello said she hadn’t sought the advice.

The prime minister would do well to call NZ First minister Casey Costello in for a please explain.

Costello puts it down to dumping a whole load of old notes, NZ First policy documents, Hansard records and the like onto health officials to guide their advice and that she “certainly did not specifically request a proposal on excise freeze”.

Costello’s notes also say that “Nicotine is as harmful as caffeine“, which while shocking to many, is not a new position for NZ First.

In fact, it’s in the party’s 2023 policy manifesto:“NZ First supports age-appropriate access to nicotine, which in adults, is generally as safe as caffeine is.”

Questions over whether Chris Luxon has enough oversight and respect from Winston Peters and his MPs.

It’s written right there on page 35 just above NZ First’s policy to freeze tobacco excise:

“Axing the tobacco excise increase due on 1 January 2024 and apply the excise to smoking products only.”

And this is where the prime minister still finds himself in a muddle.

Prime Minister Christopher Luxon seeks assurances from his ministers that they haven’t received donations from tobacco companies.

Sure, he’s done the right thing checking that all these NZ First MPs, with mates in big tobacco, who are overturning smokefree laws haven’t received money from the tobacco lobby.

The prime minister’s also helpfully clarified that, “I wouldn't have thought that you’d want the tobacco company writing a tobacco policy, personally, you know, that’d be my view as a national party leader.”

Phew.

Labour health spokesperson Ayesha Verrall appears to be receiving leaks from the Ministry of Health

But a) Luxon didn’t know Costello was seeking advice on this frankly quite radical new policy direction and b) Costello appears to still be seeking advice on the tax freeze despite the prime minister ruling it out.

It begs at least a couple of questions: are NZ First ministers going behind Luxon’s back to further an agenda not agreed in the coalition documents and are they continuing to undermine his leadership even after he drew a line in the sand?

Compare this:

Labour calling for Casey Costello to be sacked

When Luxon was asked by Stuff if he can rule out a tobacco excise freeze at any point over the next three years, he replied with a firm, “absolutely”.

However, when Costello was asked by Labour’s Health Spokesperson Ayesha Verrall in the parliament on Wednesday if the government will not be freezing excise, Costello replied, “it is advice that we are considering, and when we receive that advice we will make informed decisions.”

Hang on.

Verrall sought to clarify, “is the prime minister correct that the Government will not be pausing increases to tobacco excise tax, or is she still considering advice on that matter the prime minister has ruled out?”

Costello: “I am committed to receiving broad advice, and we will make recommendations on the best options to enable people to quit smoking.”

Hang on, hang on.

This is a brand new NZ First minister still getting advice about a policy which the prime minister has categorically ruled out.

That’s either an almighty waste of officials’ time or an almighty undermining of the prime minister’s authority.

And this is a government intent on cutting back waste.

Luxon may want to upgrade that ‘coaching’ chat he thought Costello needed as a rookie MP who’d made a mistake to something more severe, that perhaps reminds junior ministers from minor parties who’s actually running the show.