The government has launched a defence of its record on tackling the cost of living.
Finance Minister Nicola Willis joined Prime Minister Christopher Luxon at the Beehive Theatrette for the weekly post-Cabinet briefing.
She spent much of the previous week facing questions about her meeting with Fonterra chief executive Miles Hurrell.
Luxon said this week marked a full year since the tax bracket changes National campaigned on had come into effect.
"It's only through a strong economy that wages rise faster than inflation, that Kiwis can get ahead of their daily costs and our businesses can take risks that can mean that they can invest, grow, and create more jobs," he said.
He directly targeted National's main rival in opposition.
"Other parties in Parliament believe that raising taxes, growing the public sector, and giving more handouts to those who refuse to work is the answer. Taxing more, spending more, and borrowing more as Labour and others advocate for didn't work in the past and it won't work in the future."
The government's decision to increase fees paid to board members on Crown entities - in some cases up to 80 percent - may undercut the messaging that National is prioritising low and middle-income New Zealanders' interests.
But Luxon today pointed to the building products changes announced over the weekend, and the proposed ban on payment surcharges as recent examples.
He then pointed to other items in the government's agenda, including: the current pipeline of infrastructure projects, Roads of National Significance, completing the City Rail Link, signing trade deals with the United Arab Emirates and Gulf Cooperation Council, starting negotiations with India, the digital nomads visa, and the Investment Boost policy.
Asked if he was in touch with the reality of how the cost of living was affecting New Zealanders, he said "absolutely, that's what you're seeing us talk through today" and pointed to the Reserve Bank's cash rate cuts having lowered inflation.
He batted away questions about whether the government was giving New Zealanders a fair picture of the government's response to the cost of living crisis, considering there was no mention of scrapping public transport discounts, prescription fees, and free ECE for two-year-olds and the hiking of car registration costs.
"I acknowledge there are things like in some of those fees and charges that have been built up over a period of time under the previous administration that were frozen, and we had to confront the reality of what we could afford, so we've had to pass those costs through to users of those services," Luxon said.
"I just say to you, I think we're working incredibly hard... we're doing everything we can to get the big-picture pieces right for the future and make the right decisions for the long term."
Willis soon picked up the baton, rattling off her own list of changes the government had made which she said had helped lower costs, including: the Family Boost policy, ending the Reserve Bank's secondary mandate to account for unemployment, curbing government spending, changing residential tenancy laws, tax deductability changes for landlords, delaying the previous government's petrol excise increases, scrapping the Auckland Regional Fuel Tax, increasing rates rebates for seniors, increasing Working for Families support, and extending maximum subscription lengths.
She said National had campaigned on tackling the cost of living crisis, and pointed to rising GDP per capita and wages rising faster than inflation as a result of the government's interventions.
"Taking the pressure off inflation - that is the general level of price increases across the economy - helps with the cost side of the cost-of-living equation. Lower inflation means less pressure on prices... it's pleasing to say that wages are now growing faster than inflation and forecasts show this trend continuing over the next few years."
She said the government's tax changes meant "households have benefited by an average of $60 a fortnight".
The change to interest deductibility for landlords had helped to take the heat out of the rental market, she said, noting "the 2.6 increase for the year to June was the lowest since 2011".
She said the government was also making big structural changes, saying "the last government conclusively proved that band aids are not enough" and pointing to a series of policies yet to come to fruition: the Going for Housing Growth policy, Fast-tracking renewable energy consenting, work to address supermarket competition, and to curb council rates increases.
"Economies are like oil tankers, you can't turn them around on a dime. But New Zealand is back on course," Willis said.
The lists of government achievements kept coming, with Willis also pointing to: education reform, the investment boost (again), promoting global trade and investment, changes to the research and development sector, and "delivering infrastructure projects faster and better".
Meanwhile, a Cabinet Office Circular reveals the government signed off on increases to fees available to board members of Crown entities.
The government first [ https://www.beehive.govt.nz/release/bringing-crown-director-fees-closer-market-rate revealed] the changes last November.
This includes increases of 30 percent for Group 2 and 4 boards and Audit and Risk committees, and an increase of 80 percent for Group 3 bodies.
Luxon said the public sector director fees "have got completely out of whack compared to private sector fees".
"Obviously we will never pay as much as someone in the private sector but when you are spending $32 billion on healthcare for example, it's important that we are actually able to attract really good governors for the Health NZ board, for example," he said.
The changes took effect at the start of July.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
