Labour Opposes Government’s Rapid Repeal of Policies on Cost of Living

The Labour Party in New Zealand has publicly condemned the current government’s swift reversal of previous policies, particularly in relation to the cost of living crisis. Megan Woods, a senior figure in Labour, criticized the administration for what she describes as an unprecedented dismantling of legislation aimed at addressing key issues affecting New Zealanders.

Concerns Over Policy Reversals

Woods, who has observed this trend from the opposition benches for the past two years, stated, “I don’t think that we have ever seen a government come in and undo things for the sake of it because the other guys did it.” She emphasized the volume and speed of these changes as alarming, noting that the government’s first 100 days primarily focused on undoing Labour’s initiatives.

Many of the new government’s policy changes have impacted sectors such as energy and resources, areas where Woods serves as spokesperson. One particularly contentious issue is the government’s “performative” reversal of the ban on oil and gas exploration. Woods pointed out that before Labour’s policy, there had been no commercial offshore permits granted since the early 2000s. “None of this is tackling the issues that New Zealanders are really worried about,” she added.

The government’s promotion of the mining industry has also raised concerns for Woods. She clarified that her objections are not rooted in an anti-mining stance, but in the potential for divisive debates surrounding the Resource Management Act. Woods stated, “Labour has never had a blanket anti-mining perspective; we had started work on a critical minerals strategy.” She fears that hastily advancing large mining projects risks alienating community support, which is crucial for their successful implementation.

Preparing for Future Elections

Woods, who chaired Labour’s campaign in the 2023 Election, acknowledged that the party did not meet expectations and faced a significant defeat. As the party looks ahead to the 2026 Election, it has appointed Barbara Edmonds as the new finance spokesperson and is preparing to present a revised capital gains tax policy to voters.

Following the electoral loss, party leader Chris Hipkins pledged to reflect on the reasons behind Labour’s defeat and to listen to New Zealanders’ concerns. Woods affirmed this commitment, stating, “Labour gave a commitment that we would go away and look at our policies and not just say ‘re-elect us in 2026 to do what we were doing in 2023’.” She highlighted the party’s focus on developing policies that resonate with voters’ everyday lives—managing household budgets, securing housing, and ensuring job stability.

“You will hear a lot about real action on the cost of living in 2026, and that is where Labour will be focusing its attention,” Woods said. Announcing tax policy early is part of Labour’s strategy to assure the public of its ability to fund these commitments.

As the political landscape prepares for another competitive election, Woods anticipates a close race in 2026. She referred to the past elections as “high-tide” events, suggesting that the closely-fought 2017 Election—which saw New Zealand First hold the balance of power—may offer a better predictor of future outcomes than the recent elections. “For Labour to win, it needed turnout to be high,” she stressed.

Woods shared her experiences canvassing in Wigram, where she encountered traditional Labour supporters who did not vote in the last election. “I was doorknocking in Wigram over the weekend, and people would say, ‘Yeah, I will vote for Labour this time,’ but when asked who they voted for last time, the answer, time and time again, was ‘I didn’t’,” she revealed. This underscores the challenge Labour faces: motivating these voters to participate in the upcoming election.

As Labour refines its strategies and policies, the party remains focused on addressing the pressing needs of New Zealanders, particularly as they relate to the cost of living and economic stability.