Sepuloni: Families left behind despite drop in inflation

As Labour enters 2025 with rising poll numbers, the party is determined to be more vocal about its policy positions.

The party’s Deputy Leader, Carmel Sepuloni, praised their leader, Chris Hipkins, for his leadership skills and said he was not expected to be replaced.

Speaking on Pacific Mornings, Sepuloni said, “I've been in opposition previously, and it certainly wasn't as calm as what it is now with Chippy.

“And certainly, we didn't have the level of collaboration, collectivity and collegiality that we have now.

“So we're a tight ship, and I've got to give credit to Chippy for being the leader that he is during what had been some turbulent waters.”

Sepuloni attended the party's annual caucus retreat in Palmerston North and outlined a strategy to convert public dissatisfaction with the Government into momentum for Labour.

The latest Taxpayers’ Union Curia poll showed Labour inching ahead of National for the first time since April 2023, with National’s support dropping below 30 per cent.

“Obviously, it was a positive poll for Labour and has certainly set the tone, I think, for the year," Sepuloni said.

“If anything, it's probably a reflection of what we're hearing and seeing out there.

Carmel Sepuloni and Labour Leader Chris Hipkins. Photo/Ala Vailala

“They're feeling that the Government is not delivering what they promised.

“There is divisive politics that have played out across the course of the whole of last year, and it's only set to get worse with the Treaty Principles Bill and other pieces of legislation going through.

“So there is some disappointment in the Government, and I think that that really is reflected in that recent poll.”

Sepuloni said the caucus retreat provided an opportunity to reflect on the past year and strategise for the months ahead.

“The first year when you go into opposition, it really is about what Chippy spoke about early on, which is the listening to stakeholders, getting out there, finding out what people are thinking on the ground, getting those insights to help inform policy.

“The second year for us is a little bit different. You'll probably hear us doing a little bit more vocal on our policy positions and a little bit more vocal on particular areas that may come up of interest to the general public.”

Watch Carmel Sepuloni's full interview on Pacific Mornings below.

Criticism of Government performance

Sepuloni’s remarks coincided with criticisms of the Government, particularly regarding economic issues and National’s recent Cabinet reshuffle.

While inflation has eased to 2.2 per cent annually, the lowest since March 2021, she argued that families are not feeling the benefits.

“Nicola Willis [Finance Minister] is taking credit for global inflation trends, and they are global inflation trends, nothing to do with the Government's actions.

“But to me, simply, we've high rent, which has increased by 4.2 per cent, and local authority rates are up to 12.2 per cent. What we've noticed is that the non-tradables are not coming down things like energy bills and things that really impact on families.”

Turning her attention to National’s Cabinet reshuffle, Sepuloni says the changes are a futile attempt.

Luxon announced a major Cabinet reshuffle earlier this week. Photo/Ala Vailala

“Dr Shane Reti [former Health Minister] certainly hasn't performed, but the whole Government, including Luxon as the leader, needs to take responsibility for the lack of investment in the overall portfolio.

“I mean, in some ways, the man was set up to fail by not getting the financial backing that he needed to make the changes and investments that he needed to make.

“So I can't see how Simeon is going to walk in now and make a difference or do anything differently when the dollars are just not there to improve the situation.”

Coalition tensions

Sepuloni hinted at potential instability within the Government’s coalition.

ACT leader David Seymour will become Deputy Prime Minister at the end of May 2025. Photo/Ala Vailala

“We're all going to be watching very carefully with the Government to see what happens when that switch between Deputy Prime Ministers occurs.

“Winston likes being Deputy Prime Minister, and we know that that relationship between him and David Seymour has always been fraught.

“I'm not sure how he's [Peters] going to feel when the younger politician leader of the ACT party sticks into the role and he has to step away.

“And I wouldn't be surprised if there's a little bit of tension at that time. So let's watch that space.”