Two economic paths, one choice: What it means for Pasifika

Pacific families are paying more at supermarkets and petrol stations, and more for rent while many of them are earning less.

Against that backdrop, New Zealand’s two major political parties have laid out very different plans for the economy, each claiming their approach will secure the country’s future.

Speaking at the New Zealand Economic Forum at the University of Waikato this week, Finance Minister Nicola Willis and Labour finance spokesperson Barbara Edmonds offered competing answers to the same question: how do we grow the economy while making life fairer for working families?

The debate comes at a tough time for Pacific communities. Pasifika women remain the lowest-paid workers in the country, child poverty has worsened, and Pacific unemployment rose to 12.3 per cent in the last three months of 2025 - more than double the national average.

Opening the two-day forum, Willis said the Government’s focus is on careful spending, backing business, and creating stable rules so companies feel confident to invest.

“We are fixing the basics and building the future by choosing smart investments that increase performance and decrease debt,” Willis said.

Nicola Willis speaks at the NZ Economics Forum. Photo/Supplied

Willis highlighted the government’s investment boost tax policy, which encourages businesses to spend on new equipment and buildings.

She challenged Labour to commit to keeping the policy if it wins the next election, warning that businesses will hold back if they fear tax rules could change.

“New Zealand does not grow by taxing more and investing less,” she said. “We grow by backing ambition, cutting red tape, and rewarding success.”

She argued that while some reforms will not bring quick wins, failing to act now would leave the country “worse off in coming decades”.

Barbara Edmonds speaks with media at the NZ Economic Forum. Photo/Supplied

Labour: investing in people, not profits

Edmonds set out a different vision, one centred on investment in people, public services, and fairness.

“If we want a future made in New Zealand, we must invest in New Zealand,” Edmonds said, speaking about her own family’s migration story from Sāmoa and the hopes many Pacific parents hold for their children.

Labour is promising a targeted capital gains tax at the next election. Edmonds said the money would be ringfenced for rebuilding the health system and introducing free GP visits, a move she argues would help families who delay seeing a doctor because of the cost.

“Too many people are going backwards in real life, with growth that pools at the top while wages lag and essentials rise.”

She said Pacific families feel the pressure first and hardest.

“They feel it at the petrol pump, at the checkout, when they have to dip into their KiwiSaver for hardship withdrawals, or when they put off seeing a doctor because they can’t afford a visit. These are real challenges in communities like mine.”

A forum for big choices

The forum’s theme, Big Choices for a Small Nation, highlights what is at stake.

With the Reserve Bank set to announce the Official Cash Rate next week and a general election on the horizon, the direction of the economy is becoming a defining issue.

For Pacific communities, who are younger on average, more likely to rent and more exposed to low wages, the choices made now could shape opportunities for a generation.

At its heart, the debate is simple: should growth be driven mainly by business incentives and tight spending, or by higher taxes on wealth and stronger public investment?

Voters will soon decide which path they believe offers the fairest future at the General Election on 7 November.