Labour Seeks to Rebuild Urban Economies Amid Cost-of-Living Crisis

New Zealand's Labour Party leader Chris Hipkins acknowledged that his party was slow to respond to the cost-of-living crisis after COVID-19. He blamed the pandemic for diverting attention away from non-COVID-related issues, allowing right-wing parties to gain traction by positioning themselves as better at managing inflation.

Hipkins emphasized the importance of rebuilding urban economies through innovation, technology, renewable energy, and research and development. Labour's policy platform includes a New Zealand Future Fund to support high-growth businesses, innovation, and infrastructure, alongside assistance for apprentices and small businesses.

The party's fiscal plan targets an operating surplus by 2029/30, while maintaining spending and revenue at about 33% of GDP once its capital gains tax is in place. Hipkins rejected criticism that Labour overspent during its last term, arguing that if his government had stayed in power, it would have reached surplus earlier than the current government intends.

Hipkins also addressed coalition prospects, stating that any negotiations or compromises made to form a government must have public support and should not be forced through by smaller parties holding the country to ransom. He expressed confidence that Labour can win back urban, middle-income voters who will help decide the November 7 election.