John MacDonald: Labour knows people will take the money and run

A billion dollars. That’s how much Prime Minister Chris Hipkins slashed from the Government’s spending plan yesterday. Not that it’s going straight into the bank, because it’s a bit like robbing Peter to pay Paul. The money will go instead into the bread and butter things Hipkins has been talking about since he became leader of the Labour Party and Prime Minister seven weeks ago. And, as a result of yesterday’s announcement, pensioners, students, and everyone on main benefits will be better off from April 1. On the New Zealand Super front - if you’re a couple, you’ll receive $103 more each fortnight and if you’re a single person on Super living alone, you’ll be $67 better off each fortnight from the 1st of April. Who’s going to argue with that? Just like other beneficiaries and students aren’t going to argue with it, either. So, great news. Great news for superannuitants. Great news for students. And great news for most beneficiaries. Maybe not such great news on the inflation front. But, let’s face it, even though we complain about inflation - I reckon when it comes down to it, unless you’re an economist, you’ll take money in the pocket even if it means collective pain from inflation. A fair chunk of the savings announced yesterday is going to come from the Government scrapping the Clean Car Upgrade Scheme. That frees-up $568 million for other spending. I saw some of the international news coverage of yesterday’s announcement describing it along the lines of the Government putting welfare ahead of climate change. Which is why Climate Change Minister James Shaw didn’t look too happy on the TV news last night. In fact, the Green Party as a whole won’t be happy about it. But they’ll be on their own - at the left end of the political spectrum anyway - because every Labour politician I’ve seen or heard talking about this has been on-song. Even Transport Minister Michael Wood who, early last week, was all about climate change. Today, of course, he’s acknowledging the collective decision-making of Cabinet and he’s right on board with this plan to spend less on things associated with climate change and more on dealing with the cost-of-living crisis. And he’d be a mug not to be on board with it. Because, if the latest political poll that also came out yesterday is anything to go by, people are liking the policy bonfire. A bilion dollars saved yesterday. Just like that. More millions saved a couple of weeks back with the ditching of the likes of that ill-fated public media merger. People are liking it. And Michael Wood and every other Cabinet member and Labour MP knows that too and, in an election year, that’s what it’s all about isn’t it? Job preservation. As last night's One News Kantar poll showed, Labour could form the next government with the Greens and the Maori Party. Something National and ACT couldn’t. Which is quite a shift, given it was not that long ago that people were saying the election was National’s to lose. And Labour has obviously tuned in to the fact that when push comes to shove, most of us are more worried about the basics like putting food on the table. Which also came through loud and clear in that poll last night. It asked people to rank the issue that will be front-of-mind when they decide who to vote for this year. The results showed that climate change is way down the list of priorities and far and away the thing most voters are going to be mindful of is the cost-of-living and what our political parties are going to do about it. National’s already announced its additional childcare support and is still talking about changing the tax thresholds. Both of which are hard to argue with. But, if we want to use a sporting analogy, Labour is well-and-truly out of the blocks and I reckon the spending re-prioritisation it announced yesterday is going to be a winner with people. For the simple reason that, despite all the pointy-headed talk about more money in the pocket being inflationary, most people - when push comes to shove - will take the money and run.See omnystudio.com/listener for privacy information.