Election 2023: Weekend roundup on the latest policy promises

Labour confirmed at the weekend its election promise to remove the GST off fresh and frozen fruit and vegetables.

Prime Minister Chris Hipkins says it was a policy for people who go to the supermarket and worry about what they are going to put together for their family.

"A lot of the people who oppose these changes aren't the ones worrying about their weekly food bills. This policy is aimed at New Zealanders for whom every dollar at the checkout matters."

Earlier in July, Hipkins said food prices were 10 percent higher than last year, including the price of fruit and vegetables.

He says people have turned to less healthier and cheaper options as a result.

It was announced that the policy would save households an estimated $4.25 a week, based on an average spend of $32.50.

The announcement follows a series of promises from Labour as part of their "10 point" plan to help New Zealanders with the cost of living.

Finance Minister Grant Robertson says the policy is “a good one” and that the inclusion of frozen vegetables - which “low-income families use as their staple” - will reach a wide-range of New Zealanders.

The GST removal is linked to previous policies, including removing the $5 prescription charge, making childcare more affordable, and free public transport for children.

"We've done a number of things, as well as dealing with Covid, that I think have transformed and changed New Zealand for the better. This is one policy in a 10-point cost of living plan and I think it's a good one."

In April next year, the 15 per cent Goods and Service Tax will be removed from fruit and vegetables, but the announcement has received doubt and criticism.

National's finance spokesperson Nicola Willis told Morning Report Labour's policy was "pretty mean after three years of the cost-of-living crisis smashing people".

Gaps in Labour’s GST announcement were then identified today and called out by Willis.

“Labour has failed to account for the fiscal impact of removing GST in the 2023/24 fiscal year, and has only partially accounted for the cost of the policy in the 2024/25 fiscal year.”

Labour has admitted its failing, as it initially released material saying the four-year cost of the policy would be $1.985 billion and costed it from the 2024/25 financial year - but it is actually about $2.2 billion with $115 million of it being tied to the 2023/24 financial year.

Greens announce new Clean Power Payment to speed up use of solar

The Green Party also introduced a policy at the weekend, proposing a payment scheme focused on funding clean power solutions in response to the planet heating at what co-party leader James Shaw says is a “frightening speed”.

"There is a clear answer staring us in the face: warm homes powered by clean, cheap, low-carbon energy, supplied straight from our roofs," Shaw said.

The grant scheme would help cover 25 percent of the costs to replace fossil-fuel appliances with cleaner alternatives.

In its policy document, the party claimed the emissions saved from replacing gas appliances in households would be the same as taking 200,000 cars off the road.

Scaled up over three years, the Green’s say it is also aimed at supporting lower-income households with the shift to cleaner power.

“Upgrading our homes will mean they stay warmer and do not rely on dirty fuels, so everyone can come home to a warm place that doesn’t pollute the planet.“

Shaw says the policy is action on the climate crisis and action on the increasing costs of living.

It will save households up to $1200 on their energy bills, every year, and slash carbon emissions.

Funding would come from revenue from the Emissions Trading Scheme, through the Climate Emergency Response Fund.

RNZ reports that the Clean Power Payment, which is planned to be part of a broader Zero Carbon Homes upgrade, will allow:

• grants of up to $6000 to cover the cost of installing solar power and making energy efficient upgrades,

• interest-free loans of up to $30,000 to cover the cost of additional zero carbon home upgrades,

• tax deductible zero carbon upgrades for rental homes.

The Zero Carbon Homes upgrade is planned to:

• scale up solar on Kainga Ora homes to 30,000 more households in the next three years,

• expand Warmer Kiwi Homes to cover more zero carbon upgrades such as replacing gas heaters,

• fund Community Energy providers and by Māori, for Māori approaches.

New Zealand First wants referendum on government terms

New Zealand First is calling for an immediate four-year parliamentary term.

During an appearance in Invercargill at the Corinthian Convention Centre yesterday, leader Winston Peters announced he wants a referendum held in this year's election, stating that the current three-year term is too short.

Referencing both Abraham Lincoln and musician Phil Collins in his prepared speech, Peters emphasised the need for politicians to recognise their role as “servants” to the public.

He said that it should be up to the New Zealand voter to decide the parliamentary term.

"Governments are hardly elected, when too much of the time is campaigning and not fixing up the country’s problems. Elections are expensive so it will save money and get better long-term outcomes for our country," Peters said.