The leaders of Labour and National came out swinging in tonight's TVNZ Leaders' Debate, clashing over the state of the economy and their respective economic plans.
Both Labour's Chris Hipkins and National's Christopher Luxon addressed the current high cost of living in their opening statements.
Hipkins promised to bring inflation rates down. He also took a dig at National: "You don't help with the cost of living by cutting jobs in critical public services."
Luxon replied: "This election is all about the economy, and which party can rebuild it and reduce the cost of living so you can get ahead."
He said the National Party's tax cut plan was the way to do that.
Pressed on whether the $15 billion price tag on that plan was really affordable, Luxon said the plan was "self-funding, by generating savings from wasteful government spending".
"At the same time, we've raised new sources of revenue."
One of those planned revenue sources, the party's plan to end the foreign home buyers ban, has come under scrutiny from economists.
National's finance spokesperson and deputy leader Nicola Willis said should she be finance minister after the election and her party fail to deliver its pledged tax reduction plan, she would resign.
Replying to Luxon and a question about his own party's plan, a proposal to remove GST from fruit and vegetables, Hipkins said: "There's two things you need to do in a cost of living crisis.
It comes as the cost of living crisis is a major issue for many voters ahead of the election. (Source: 1News)
"You need to bring inflation back down again, and you need to support New Zealanders through that.
"National's tax cuts would make inflation worse," he claimed. "And they want to cut all of the targeted support that we're putting in place to support Kiwis with the cost of living."
National has said it wants to revoke funding for free public transport for children under its tax plan, while also effectively doubling the price of fares for youth under 25.
Luxon hit back at Hipkins' criticism of their proposed tax relief: "It's better than a couple of cents off your beans and carrots.
"None of that GST coming off fruit and vegetables is going through to customers or consumers."
Labour finance spokesperson Grant Robertson has in the past called the policy a "boondoggle" – a pointless and unnecessary exercise.
Hipkins and Luxon spoke over each other as the debate heated up.
The Labour leader said the establishment of a grocery commissioner was to ensure the cut was passed on to consumers.
"Supermarkets are making over a billion dollars a week in excess profit," Hipkins said.
Luxon spoke over the end of his sentence: "They're going to make a lot more now."
Hipkins said the National Party was "all about marketing and spin".
"When you break it down, the National Party's tax cuts don't actually add up to much for most New Zealanders," he said.
"And National can't say how they're going to pay for it. The plan does not add up."
Luxon replied: "No, it's about delivery in the National Party.
"Chris [Hipkins] has got a plan to take GST off fruit and vegetables, he's suggesting that a grocery commissioner is going to go around with a clip board looking at the price of bananas up and down this country.
"You get a couple of cents off your fruit and vegetables, and then what he's gone and done is increased tax on fuel."
Luxon said this would make the costs of transporting food more expensive.
Hipkins said the price of petrol would also go up under National. Luxon said they wouldn't increase fuel tax in their first term.
Foreign buyers tax
On the foreign buyers tax, Luxon said the numbers had been independently verified by economists.
Pressed on why the party wouldn't release its modelling, he repeated that the numbers had been reviewed by independent economists.
Hipkins said National wasn't releasing the numbers "because they know they don't add up".
"They're also banking on New Zealanders gambling online more in order to pay for their tax cuts," he said.
National has said it would close a tax loophole to make offshore online gambling services pay tax.
"Let's not forget the $6 billion worth of public sector spending cuts that they want to make, and they're not telling New Zealanders what they're gonna cut," he argued.
Luxon replied: "Chris is a bit bent out of shape because the Labour Party and the CTU [Council of Trade Unions] used to actually support working people. I support working people."
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