Chris Hipkins puts job on the line over no new taxes beyond CGT

The polls are indicating a tight race between the left and right groups, meaning National or Labour would need to negotiate with multiple partners in order to form a government.In an extended interview with Nine to Noon, Labour leader Chris Hipkins said his party has heard the message from voters who rejected the government he was leading in its final months before the last election."The cost of living was the number one issue in 2023 and we didn't have answers that the voters were convinced by."Watch Chris Hipkins' full interview:With unemployment at an 11-year high, it was critical to ensure small businesses were a priority so they could flourish and start hiring again.Government contracts would help ease the woes in the construction sector and more apprenticeships would be a part of that.No increases in fuel taxes, three free GP visits and public transport fare caps would all help ease cost of living pressures, Hipkins said."Pay equity will be huge for the New Zealand economy. When you give tens of thousands of care and support workers a pay increase you lift kids out of poverty and you put more money into the local economy."No room for a wealth taxLabour's priority would be to balance the budget and not add new taxes which meant the Greens' desire for a wealth tax would not be accommodated."It [a wealth tax] hasn't worked anywhere else in the world and there's a reason why countries that have them are taking them away because ultimately they don't work."While the Greens, Te Pāti Māori and Opportunity had plans for major tax reforms, "there isn't a public appetite for tax reform that is that radical," Hipkins said."We will not support new taxes that we do not have a public mandate for."Hipkins said he would put his job on the line over not introducing new taxes, apart from a capital gains tax.A capital gains tax was supported by the public and was "long overdue".He cited its success in Australia where it had increased revenue for the government over time.Chris Hipkins on the campaign trail in Palmerston North.Zach Cornelisen / RNZInflation blameHipkins was asked if the last Labour government borrowed and spent too much during the pandemic, causing inflationary pressure that was still persisting. He disagreed.New Zealand's peak rate in the post-pandemic period was 7.4 percent while other countries, such as the United Kingdom, reached double figures."We were hit by a global wave of inflation."Inflation was at 4.6 percent when Labour left office and had risen when the coalition government took office, Hipkins said.Ryan said Labour's fiscal plan was similar to National's despite Labour accusing the coalition government of producing an austerity Budget last year and people were confused as to how these things added up.Hipkins responded it was important to balance the Budget and pointed to the Clark government in the 1990s which had demonstrated that if the Budget was balanced, big legacy items such as interest free student loans, free early childhood education, KiwiSaver, and Working for Families were options that could be brought to fruition.Ryan pointed out that they also came from bigger Budget surpluses than even Treasury had estimated and asked how Labour could pay for bringing back the pay equity scheme if it wanted to be fiscally responsible.By doing away with the current government's Investment Boost which largely benefited major businesses, millions of dollars would be saved. Instead, some funding would be directed at small businesses, Hipkins said."That will save us some money and we are going to put that money into pay equity, amongst other things. So we have set out different choices and different piorities but we will be responsible with the way we manage the government's finances."The new capital gains tax would provide billions of dollars for the health system.Labour had released a specific policy on easing the emergency care crisis in public hospitals, Hipkins said.Those with winter ailments should be treated elsewhere, he said."So making primary care free will be the biggest change to the health system since the first Labour government made hospital care free. That will keep people out of hospital."The other major pressure on hospitals was the increase in elderly patients when care in the community would be much more preferable and was part of Labour's policy.It would take a "significant investment", he said.Education changesThe literacy standards introduced by the current government was based on work the previous Labour government had done and would be retained, he said.The NCEA changes would need to be slowed down because "ramming through big changes to the school qualification system" wasn't something politicians should do.The system needed to be changed because it was resulting in children being overassessed and "a grab-bag of credits for kids".Hipkins was confident he could lead a multi-party government despite his time as prime minister being when Labour was the sole party in government.He would set clear standards of what was expected."Everybody does need to work together to make government work. You can't have a situation where Winston Peters, Shane Jones, David Seymour, whoever is going out go out and pretend ing to be a separate government."He ruled out sharing the role of Finance Minister which would be filled by Barbara Edmonds and there would be no Treasurer.He didn't believe there would be a big overhang and was confident that Labour would pick up some National seats.