Labour looks back at its work

The Labour-led Government has been in power for more than two years and it will no doubt be trumpeting its successes at its annual conference this weekend.

Jacinda Ardern, Labour leader and Prime Minister, will point to the Government’s work on child poverty and wellbeing, and Finance Minister Grant Robertson will hammer home his economic wins.

Although National crept ahead of Labour in the latest 1 News-Colmar

Brunton poll, Labour was still well ahead of where it was on election night 2017.

Political commentator Bryce Edwards said a lot of members would be toasting the party’s success by the end of the gathering in Whanganui. But many, particularly on the left, would be concerned it had not done enough.

The KiwiBuild debacle and the inability to get a capital gains tax over the line were areas of failure for Labour, Edwards said: “That’s embarrassing for a lot of members and activists.”

When campaigning before the 2017 election, Ardern consistently talked about a Government she would lead as being one of transformational change. In some areas, there is no denying the Government has performed well.

Average household income is up, as is GDP per capita. But Auckland Action Against Poverty spokesman Ricardo Menendez said the Government was not doing enough for people on low incomes.

“Benefit levels remain below the poverty line and more people are needing to queue at Work and Income for a food

Jacinda Ardern

grant to cover basic expenses.”

One of the main handbrakes for the Government is its Budget Responsibility Rules (BRRs), which limit Crown spending and borrowing.

Prominent economists such as Shamubeel Eaqub have called such rules a “fiscal straitjacket”.

ANZ senior economist Sharon Zollner called the 20 per cent debt target “arbitrary”.

Despite the fact Robertson did change that target to a band earlier this year, it is understood Labour is facing increasing pressure from altogether and scrap the debt and spending limits.

Today Robertson will take the stage for a much-anticipated speech. He faces pressure to signal Labour’s intention to ditch the rules before next year’s election.

This will be enough to appease some members, and is unlikely to upset many economists as the Reserve Bank has been calling on the Government to spend more money for months.

Jason Walls