Dr Malini Yugendran
Auckland, February 9, 2023
Prime Minister Chris Hipkins has announced a series of changes in government policies aimed at putting the cost of living at the forefront of the government’s agenda. In a press conference, Hipkins stated that the government is refocusing its priorities to better serve the needs of New Zealanders.
TVNZ/RNZ Merger
One of the major changes is the cancellation of the proposed TVNZ/RNZ public media entity. Instead, Radio New Zealand and New Zealand on Air will receive additional funding to support public media content. The government has also redirected the remaining funding to other priorities.
Mr Hipkins said that the social insurance scheme, which has been a highly debated topic, will not be proceeding in this term due to economic conditions. He added that the government will, however, continue to explore ways to address the inequities in the future when the economy is in a better position to make changes.
Human Rights Bill
The Human Rights (Incitement on Ground of Religious Belief) Amendment Bill will be withdrawn and referred to the Law Commission for further guidance. The official website of the government stated that this will provide the Law Commission opportunity to consider this complex area of law in its entirety.
Biofuels
The biofuels mandate, which was expected to increase fuel prices, will not be proceeding. The Prime Minister stated that given the pressure on households, he was not prepared to increase fuel prices at this time.
Three Waters
The government is also considering changes to the Three Waters programme, with the need for reform being a priority. The report stated that the recent events in Auckland have once again highlighted the limits of existing infrastructure and the need for change.
The Three Waters issue in New Zealand refers to the management of drinking water, wastewater, and stormwater in the country. This is a complex and pressing issue as the country’s ageing water infrastructure and increased demand for water resources pose a challenge to ensuring access to clean and safe water for all citizens. The events in Auckland have recently highlighted the limitations of the existing infrastructure, and the need for reform in the management of these vital resources.
Minimum wage increases
To support families with the cost of living, the government has also set a new minimum wage that will increase by the rate of inflation, starting from April 1st, 2023. The minimum wage will be set at $22.70 per hour, with the Starting-Out and Training minimum wage rates remaining at 80% of the adult minimum wage.
According to analysis from the Ministry of Business, Innovation and Employment, the increase in the minimum wage is unlikely to have a significant impact on unemployment and is expected to have a minor inflationary impact of 0.1% on the wages portion of the Gross Domestic Product.
These changes in government policies demonstrate the government’s commitment to supporting businesses and low-income families.
The cost of living remains its top priority, with the government working to find the right balance between supporting families and growing the economy.
Dr Malini Yugendran is an Indian Newslink Reporter based in Auckland.
