'A deal is a deal': Bed tax is still Govt policy – Winston Peters

NZ First leader Winston Peters says bed levies in Auckland and Queenstown are still on the table, and if other parties want to renege on a deal to even consider a levy, that's up to them.

By Giles Dexter of RNZ

As part of its "no new taxes" commitment, National has ruled out a bed tax if re-elected.

The move disappointed the mayors of Queenstown and Auckland in particular, with Auckland Mayor Wayne Brown aggrieved, given a commitment to explore a bed tax was part of the Auckland Regional Deal.

"The deal is meaningless if the Government cannot honour even a relatively modest commitment to explore an agreed proposal," Brown said.

Peters said the deal was made with the coalition Government and those cities, not National and those cities.

"The signed deal with Auckland states that these levies will be considered by the government in 2027 – nothing has changed," he said in a social media post.

"The GOVERNMENT has NOT considered it yet. If other parties want to campaign on reneging on the deal to even consider the levy that's up to them.

"But in NZ First we believe a deal is a deal."

He accused the Prime Minister of going back on his word.

"When he made that statement, he was talking on behalf of the Government, and we're going to make sure the Government keeps its word. The National Party may not keep theirs, but we're keeping ours."

Peters said NZ First's view was that international tourists should be open to a bed levy that helps pay for key tourism infrastructure.

He believed it would be possible to make the levy only apply to international visitors.

"It'd be easy to do, just like Te Papa. If you walk in there and you're a New Zealander, you don't get charged."

National's concern has been that New Zealanders may end up being caught up having to pay the levy.

Finance spokesperson Nicola Willis said the Government's policy was to explore a bed tax but National's view was that in exploring it, there were problems and alternatives.

Willis indicated National would propose policies at the election to provide more support to local government in areas with significant tourism.

"We don't think it's viable to make every Kiwi pay more for their holiday. Winston Peters clearly does think that's a winner of a proposition. Up to him to go and argue it on the campaign trail."

The Department of Conservation also trialled differential pricing for Great Walks from 2018-2020, and Conservation Minister Tama Potaka has been looking at work to charge foreign visitors to access high-volume sites like Cathedral Cove, Tongariro Crossing, Milford Sound, and Aoraki Mount Cook, while keeping them free for domestic visitors.

But when asked whether that mechanism could be applied to the bed levy, Potaka deflected.

"My understanding is Labour is an absolute expert on tax. So maybe you should ask the Labour Party and their leadership how they want those taxes to be to be laid out on those beds."

Labour leader Chris Hipkins said the Prime Minister's signature was the one on the page, not the National Party leader's.

"Last I knew, he was still Prime Minister. It may not feel like that all of the time, but actually he is the Prime Minister in this Government," he said.

"If the mayors across the country can't trust Christopher Luxon's signature, why should any New Zealanders?"

ACT leader David Seymour said it was "theoretically true" that the Government was still considering a bed tax, but he was clear it should not be introducing new taxes.

Seymour said National had not been unfaithful, but had been inconsistent.

"We were never going to agree to it, but, you know, the National Party was going to support it. Now they're not, and I think that's great."

Infrastructure Minister Chris Bishop accepted there was "a bit of friction" between what the Government signed up to and what the National Party is now saying.