Sunday Star-Times

How Labour’s Budget story is designed as an epic trilogy

- Jon Johansson Jon Johansson was a long-time political scientist at Victoria University and chief of staff to deputy prime minister Winston Peters in the Labour-New Zealand First coalition government.

Reading a great trilogy is a delight. There’s continuity and change, but the characters and story that first gripped you only grow in your imaginatio­n. Labour will be hoping for a similar effect from voters after writing the first of what its author labels a Budget trilogy.

Labour’s political narrative is now well-establishe­d and its leading character is wildly popular. Freed from its origin story or prequel, being selected to form a government in 2017, Labour is now establishi­ng its own distinctiv­e narrative.

Well mostly, because Budget 2021 did include two items carried over from the coalition prequel: Continuing rail investment and the Scott Base redevelopm­ent.

Be that as it may, one can detect two narrative arcs from the trilogy’s initial offering. The first is to firmly shore up its base to reinforce to these voters that this is a traditiona­l Labour Government, closer in intent to the First than the heretical Fourth.

The minister of finance even set his Budget against the darkest days of yore, when a villainous Ruth Richardson unleashed a fiscal austerity plague upon workers and beneficiar­ies and scarred our previously fair lands.

With a villain identified, raising benefit levels assumed the greatest prominence in the early retelling. ‘‘At last, a Labour Government,’’ breathed Leftleanin­g supporters, relieved after rising unease about not doing enough to address inequality.

There was a muted response from centre-Right voters, many of whom kept their jobs through the wage subsidy, so think it’s ‘‘fair enough’’ that others less fortunate also get their reward from our shared sacrifice.

And that’s the second metanarrat­ive that will dominate the trilogy: Covid-19. The ‘‘Team of Five Million’’ is hanging together because of the pandemic even as the Budget carved the team up in politicall­y orthodox ways.

Labour’s significan­t innovation is the immigratio­n reset as both intended ends and programme means are set to change. Even social insurance is a more instrument­al adaptation than innovation because, while the programme means will change, the desired ends – providing temporary relief to those losing employment – have not.

Ministers not invited to make Budget bids face two-and-a-half years of arguing progress while armed with only a sinking lid to effect change.

The only political clouds Labour faces is when one of its plotlines confounds the metanarrat­ive of Covid recovery.

Thus, the biggest storm followed Labour’s pay freeze announceme­nt because nurses, teachers and police were viewed as heroes. Labour quickly began melting the freeze after recognisin­g their plot device’s mistake.

The plot developmen­t in second and third instalment­s of the trilogy will try to skilfully position Labour ever closer to the median voter, so will shift Rightward.

The next chapter will elevate climate change for there were scant words in the Budget, despite a declared climate emergency in the shire.

Money is provided for a form of ‘‘Feebate’’ scheme but, one suspects, Labour is finding the devil is in the policy detail.

The version(s) presented during the prequel coalition had two problems, inequity, with one official’s line still vivid; it (the feebate scheme) provided a ‘‘double benefit’’ for urban carowners and a ‘‘double burden’’ for everyone else. The scheme was more graduated than that, to be fair, but the carbon burden did disproport­ionally impact the poor.

The second problem was that rural and some trade vehicleown­ers had little to no choice in replacing their existing purposebui­lt vehicles. Those twin headaches make policy design tricky.

Plotlines around housing affordabil­ity, climate change, and reducing child poverty will weave through the second and third parts of Labour’s wellbeing trilogy.

The other we’ll hear is ‘‘balance’’. It was repeated ad nauseam on Budget Day and by 2023 it will be the dominant trope. By then a clamour for fasterpace­d change will be back, giving the gloriously impotent Greens a chance to win leverage.

National and ACT will employ some variation of the road to hell being paved with (the PM’s) good intentions (but her government’s non-delivery), but it’s hell nonetheles­s.

Labour will be confident it will still command the centre – and provide balance against extremes – by asking voters for a further strong mandate to make progress towards its wellbeing objectives.

Its chief risk before 2023 is if the meta-narrative – Covid recovery – changes for the worse. Stripped of that power, counternar­ratives will have more fertile ground to take hold, and with several issues bubbling close to the surface, sudden plot twists can’t be ruled out before the trilogy is complete.

There was a muted response from centreRigh­t voters, many of whom kept their jobs through the wage subsidy.

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