Speech To The National Party Conference 2022: Getting Our Economy Working For You
6
August 2022 Greetings everybody. It
feels so good to be here in Christchurch with you. To
each and every one of you, President Peter Goodfellow, Board
Members, Regional Chairs, office holders, Parliamentary
colleagues, members and volunteers, thank you. Thank
you for being part of National’s mission to take New
Zealand forward. And thank you to our Leader,
Christopher Luxon, for driving that mission. For uniting our
team, for growing our support, for bringing his immense work
ethic, integrity and enthusiasm to the leadership of our
Party. I’ve so enjoyed getting to know Chris better
these past few months, seeing his deep care for people, his
commitment to get the best out of every player in the team,
his depth of knowledge and his global perspective. His pride
in New Zealand and his optimism for what we can
achieve. Together, we’re going to turn this country
around. Our first task is to win an election, that’s
true, but our ultimate task is to take New Zealand
forward. Now more than ever, New Zealand needs a
National Government with a positive vision for the
future. Because as resilient and tenacious as we Kiwis
are, and as great as this country of ours is, there’s no
denying how tough things have become. New Zealand is
facing the most challenging economic conditions many of you
will have experienced in your lifetime. The cost of
living crisis is making everything more
expensive. Prices are growing faster than wages,
meaning your pay gets you less this month than it did the
month before. Interest rates are climbing fast, rents
have exploded, and mortgage payments are costing
more. Businesses can’t find workers, so they’re
letting down customers, compromising quality and giving up
on growth ambitions. The people covering the vacancies
feel exhausted, like the small business owner I spoke to
recently who’d worked 152 days in a row without a break,
like the nurses in our hospital doubling down on overtime
and the farmers who can’t remember the last time they did
less than a ten-hour day. With Labour in Government
many hardworking people can’t see a way out of these tough
economic times. They are despondent about the future and
fear it’s only going to get worse. My message today
is simple: National has a better way. We will get the
economy working for you once more. To get out of our
economic malaise we must first understand how we got in
it. Yes, COVID-19 has a lot to answer for. And
yes, New Zealand wasn’t the only country that responded to
the pandemic with large amounts of borrowing, spending and
money-printing. But let’s be clear: New Zealand did
a lot more of it than most. While all countries put their
foot on the accelerator to some extent, our Government put
its pedal to the metal. New Zealand’s COVID-19
spend-up, relative to the size of our economy, was second to
only one other country: the United States. Meanwhile,
our Reserve Bank’s monetary response to COVID was the
fifth largest in the world, relative to the size of our
economy. We simultaneously had our Finance Minister
pumping the accelerator while our Reserve Bank reached for
over-drive. No car can drive that fast without a
moment of reckoning, and no economy can either. Today,
we are living with the consequences: Prices are rising
faster than they have in 32 years, inflation has got a grip
on our economy and its eating a hole in every
pocket. Reality bites. Inflation, like a debt
collector in the night, is extracting a price from all of
us. National, along with every other Party in
Parliament, is calling for an independent inquiry into the
economic response to COVID-19. Labour says no. I
simply say this: Those who ignore the lessons of history are
doomed to repeat their mistakes. Labour’s first approach to managing the cost
of living crisis was denial. Now its magical
thinking. Instead of presenting a plan to restore
productive growth to our economy and to address the
underlying drivers of inflation, it has dialled up its
spending, choked access to new workers, and lurched from one
temporary band-aid policy to another. Its signature
move, the ‘cost-of-living payment’ has been a
spectacular failure, resulting in taxpayer dollars going to
ex-pats in London, French backpackers and dead
people. It’s so bad I think it’s earned itself a
nickname: I’m going to call it KiwiSpray. It’s
like KiwiBuild only instead of being 99,000 houses short,
it’s 800,000 payments short. National on the other
hand has a sensible, common-sense plan to beat
inflation. We will bring an end to Labour’s failed
policies of high-taxing, big spending, big Government, with
no accountability for failure and no focus on
results. We will restore careful economic management
to this country so that prices stop rising so fast, Kiwis
can get ahead and businesses can grow. • We will
reduce the tax burden on New Zealanders. • We will
restore discipline to Government spending • We will
reduce the regulation and costs imposed by
Government • We will ensure New Zealand has the
workers needed to deliver services and grow
businesses • We will return the Reserve Bank to a
single mandate I want to make a few
comments about why tax reduction is important to
us. As our first Leader Adam Hamilton said when
National was founded: “[National stands] for a reduction
of taxation so that enterprise may be encouraged, industries
established and living costs reduced.” National
wants to leave as much spending power as possible in the
hands of those earning the money. We want New Zealanders to
keep more of their pay so that they can save for that first
house, invest in that start-up, expand that small business,
hire that new worker, take the kids to the movies or have
the security of money put aside for a rainy
day. Labour on the other hand believes bigger
Government is the solution to every problem. Despite failing
to deliver time and time again, they think things will
miraculously get better if only they could spend more of
your money. Like a gambler at the track, they throw good
money after bad, and take no accountability for the
results. The result is that Government is now
collecting $41 billion more a year in tax than when Labour
first came to office. It’s gone too far, and
National will ensure a fairer deal. • We will scrap
the Auckland Regional Fuel Tax. It’s hurting Aucklanders
every time they fill up at the pump. It has to go. •
We will scrap Labour’s plans for an Auckland Light Rail
Tax. • We will scrap the Ute-Tax. It’s nothing but
a punishment to farmers and tradies and you deserve
better. • National will scrap the 39 per cent top
tax rate. It’s an envy tax. • National will scrap
the 10 year Brightline test extension. It’s a capital
gains tax by stealth. Labour didn’t campaign on it,
didn’t have a mandate for it, and did it anyway. •
National will scrap the rent-hiking Tenant Tax. We will
bring back interest deductibility for rental
properties. National will also deal to Labour’s
stealth tax: inflation-driven bracket-creep. Inflation
has helped fund Labour’s tax and spend binge. You
see, when inflation increases, people’s wages go up on
paper. In theory you may be earning more, but in reality the
pay rise isn’t helping much because prices are gobbling it
up. You’re probably going backwards. But the IRD
doesn’t care. It just sees a higher pay rate, and if you
find yourself in a higher tax bracket, you get taxed at the
higher rate. National will index tax thresholds to
inflation. We detailed our plan for doing this in March. We
will deliver those tax reductions in our first term of
Government. It’s our commitment to you. You can
expect to hear more from us on tax reduction next year. Our
vision is to go further still. National is committed
to providing as much tax relief to working New Zealanders as
we responsibly can. Labour
meanwhile is busy designing new taxes. The Finance
Minister, Grant Robertson, is quietly setting up a new unit
in the ACC for his latest pet project, a social insurance
scheme. He has a plan to pay for it too - a Jobs Tax.
That’s right, the Finance Minister is planning a new tax
on every single employer and every single
employee. National will scrap Labour’s Jobs
Tax. The Revenue Minister, David Parker, is also up to
mischief. Like many of his Labour colleagues, he
fantasises about a capital gains tax. He’s created
his own new unit at the IRD. Sometimes referred to as the
“Piketty Unit” after his idol, the socialist economist
and wealth-tax advocate Thomas Piketty. The Piketty unit is
working at pace, collecting data about New Zealanders assets
and incomes, their taxes and business
arrangements. It’s not clear exactly what this will
lead to but I do know this: More tax is in Labour’s
DNA, and they’re dreaming up new ways to take
it. Mark my words, Labour will put a capital gains tax
back on the table. The name may change, it might be in
disguise, but it’s coming. The more Labour spends, the more tax it
needs. And Labour is on a spending spree. In
December, the Government forecast it would spend $120
billion in the 2023 financial year. Then the Budget
rolled around and Labour just couldn’t bring itself to
stick to its spending limit. Instead of spending $120
billion this year, its spending $127 billion. That’s 70
per cent more per year than when it first came to
office. Ask yourself this: Are you spending 70 per
cent more today than you were five years ago? I doubt it.
Well, the Government is. Are they getting 70 per cent better
results? Of course they aren’t. They’re simply
addicted to spending. National will bring discipline
to spending by stopping Labour’s worst projects, reducing
backroom bureaucracy, eliminating waste and driving better
results from existing Budgets. Let me give you some
examples of poor projects that Labour has been splashing the
cash on. -Three Waters Reform: Labour’s Three Waters
plan to do a mega-merger of council owned water assets is
undemocratic state centralisation at its worst. It also
comes with a $3 billion price tag. National will repeal and
replace Three Waters. - The TVNZ-RNZ Merger: Labour
has inexplicably decided to embark on a mega-merger of the
two state broadcasters. It comes with a $370 million price
tag. National opposes it. - Labour have also ploughed
$200 million into the creation of Te Pukenga, the
mega-merger of New Zealand’s polytechnics and institutes
of technology. National opposes it. National will not
pour billions of dollars into centralisation and
bureaucracy. National will instead focus on doing the
basics better. We value the vital role Government
spending plays in delivering essential public services:
providing healthcare and education, ensuring support for the
vulnerable, keeping our communities safe, building and
maintaining the physical and social infrastructure we all
rely on. That’s why National has committed to
increasing health and education spending every year we are
in office, matching increases to the rate of inflation at a
minimum, but allowing also for population growth and other
pressures. But we know spending more will not in
itself deliver better results. If it were that easy, then
why is Labour overseeing an explosion in truancy, declining
literacy achievement, and a health system in
crisis? National will set public service targets for
the better health and education services New Zealanders
deserve, drive better delivery, and demand accountability
for results. We will push for more value from every
buck. We will ask every Minister to examine spending in
their agencies line-by-line with a focus on eliminating
waste. Just as households are having to carefully
evaluate their budgets to cope with rising costs, so too
should public agencies. National is wary of the
insatiable appetite Government has for growing
itself. We will stop the explosive growth in the
backroom bureaucracy and move more resources to the
frontline, away from Departments and into
communities. National won’t tolerate a New Zealand
where inter-generational poverty is normalised, where
Government Departments service misery but repeatedly fail to
solve it and where good intentions are seen as a substitute
for good results. National will revive Sir Bill
English’s social investment work. We will use his social
investment approach to solve our deepest social problems,
getting Government agencies out of the way, investing not
for narrow outputs tomorrow but for long-term impact,
measuring results and changing lives. We are
determined to do better for the New Zealanders whose lives
are complex, but whose potential is great. Social
investment’s time has come. As Sidney
Holland, National’s first Prime Minister said in 1943
“National believes in individual freedom, a competitive
economy, and the minimum of bureaucratic intervention,
restriction and regulation”, “ less red
tape”. Our vision is to reduce red tape to ensure
Kiwi firms can spend less time and money on compliance and
form-filling and more time innovating and growing. We
will restore the right of employers and employees to
negotiate freely and not to be bound by new compulsory,
nationwide, sector-wide collective agreements. The
1970s have called and they want their policy back. So-called
Fair Pay Agreements have no place in 2022, and no future
under National. We will stop Labour’s experiment of
seeing what happens when you starve an economy of migrant
workers. We know what happens – fruit rots on the vines,
hotel sheets go unchanged, manufacturers cancel orders,
exporters leave value on the table and new customers go
elsewhere: all for lack of people to do the
job. National will fix our immigration service. We
will take it from the bureaucratic Police Force its become
and turn it into the Recruitment Agency New Zealand needs it
to be. Finally, National will return the
Reserve Bank to economic orthodoxy with a singular mandate
to manage inflation Ladies and gentlemen, the
commitments I have outlined to you this morning will ensure
our economy works better for you and all New
Zealanders. National is ambitious for this country,
and our sights are raised high, so you can be sure we will
work relentlessly on the long-time drivers of economic
growth: • unlocking the potential of our people
through better education; • delivering
growth-enhancing infrastructure; including the
infrastructure New Zealand will need to adapt to climate
change • attracting new sources of
capital; • embracing science and technology,
including to reduce greenhouse gas emissions and •
growing our connections with the
world; National has what it take to
get this economy off its knees. We can bring hope back to
every Kiwi slogging it out day after day, paying the bills,
not asking for favours but desperate for a fair go; some
reward for your efforts. We hear the pleas of
struggling Kiwis and we say: National has your
back. We won’t sit back and let inflation fleece you
every time you open your wallet. We will back you to
get ahead, we will back your family with the better public
services you deserve and we will back New Zealand businesses
with the freedom and workers you need to succeed. As
Sydney Holland once said: the essence of the National Party
philosophy is “fewer restrictions and greater
opportunities”, “greater freedom to follow one’s own
star”. National will lift New Zealanders sights to
those stars once more. We’ll get the country moving in the
right direction again. Ladies and gentlemen, it’s
time to bring some aspiration back to New Zealand. With
Christopher Luxon as our Leader, and the people in this room
as our support, come next year’s election, that is exactly
what National will
do.The Cost of Living
Crisis: How did we get here?
The Cost of Living
Crisis
Tax
Labour on Tax
Disciplined Government
Spending
National will stop the
tide of Government costs and regulations.
National will ensure New Zealand has
the workers needed to deliver services and grow
businesses
Conclusion