Jenny Salesa argues for urgent cost-of-living relief as Govt defends economic record

Labour MP Jenny Salesa says life is becoming increasingly difficult for Pacific communities due to rising job losses and inflation.

In an interview on Pacific Mornings, Salesa criticises the Government for not providing adequate support for the cost of living.

“Costs are getting higher and life is getting harder and harder, especially for our Pacific families,” Salesa says.

“The Reserve Bank said yesterday that they expect the inflation rate to increase, and this is especially around food prices, and this, for me, is a huge concern, especially for our Pacific people.”

She argues that the government could help by creating more jobs and offering cost-of-living relief, rather than implementing cuts that disproportionately affect women's wages.

This week, the Reserve Bank announced it would keep the Official Cash Rate (OCR) low, a move supported by the government.

Watch Jenny Salesa's full interview on Pacific Mornings

The OCR is a tool used by the Reserve Bank to maintain price stability, which helps control inflation.

Finance Minister Nicola Willis says previous reductions in the OCR have led to lower mortgage repayments.

“Lower interest rates free up household budgets for spending elsewhere and they ease the path for those wishing to enter the housing market,” Willis says. “They also provide relief to interest-rate sensitive sectors of the economy, including building and construction, with lower interest rates often providing a kick-start for big new projects.”

Finance Minister Nicola Willis. Photo/PMN News/Ala Vailala

She credits the government’s ‘careful stewardship’ for the low inflation rates.

“New Zealand now has steady hands at the wheel, and a Government that is determined to keep our economic fundamentals in good order.”

Despite the government’s positive assessment, Salesa says she’s noticed an increase in the number of constituents seeking assistance in her electorate office.

“Even though they're working, they cannot find a place that's affordable for them to live in.

“In terms of the jobs that have been lost, we know that there are over 15,000 jobs in the construction sector alone, and we know that so many of our Pacific people work in construction.

“So when people lose their jobs, unfortunately, it's Māori and Pacific that lose their jobs, it seems, first.”

The Reserve Bank of New Zealand (RBNZ) is New Zealand's central bank, responsible for maintaining a sound and efficient monetary and financial system. Photo/Reserve Bank NZ

Salesa also discussed recent changes to the Anti-Money Laundering and Countering Financing of Terrorism laws.

Associate Justice Minister Nicole McKee announced reforms that simplify requirements around family trusts and make it easier for parents to open bank accounts for their children.

Under the new measures, banks will only need a birth certificate to confirm a child’s name, date of birth, and relationship to their parents, provided the minor’s account is deemed low-risk.

Families selling a home in a family trust will face a simplified assessment by real estate agents for low-risk sales, which could involve just verifying ownership and trustee details against the certificate of the title.

“These changes reflect the Government’s wider commitment to smarter regulation, focusing on outcomes rather than ticking boxes, and trusting New Zealanders to make responsible decisions without being buried under red tape,” McKee says.

Associate Justice Minister, Nicole McKee. Photo/PMN News/Joseph Safiti

Salesa says the problem may not be as big as the government has portrayed.

“I want to say that if it does actually end up with more kids saving and having a better understanding of money.

“So if this improves that aspect of it, I support it, but we must get these laws right because if the laws are too loose, they can be exploited for money laundering, which is why this law was put there in the first place.”