Jacinda Ardern confirms new government will dump tax cuts

Jacinda Ardern has confirmed the Government she leads will dump the tax cuts planned by National.

Ardern has also suggested a planned referendum on legalising cannabis for personal use could be binding.

The Labour leader addressed media at Parliament today after a caucus meeting that elected the 21 Labour Ministers who will serve in the new Government, along with ministers from NZ First and the Greens.

Ardern confirmed National's tax cut package would be cancelled. New Zealand First and the Green Party both voted in favour of the package.

"It means dumping National's plans and replacing it with Labour's tax package which is substantially more generous to lower and middle income families."

Policy agreements will be released in full next week but Ardern revealed more about what New Zealanders can expect from their new Government.

That included a public referendum on legalising cannabis for personal use, to be held by the 2020 election and part of the agreement with the Greens.

Significantly, Ardern suggested that could be a binding referendum - meaning the result will need to be acted upon on implemented.

"That might be a conversation we have as an executive. I think if you go to the New Zealand public on an issue like that and it is a conscience vote then we really should place some weight on the public of New Zealand's view."

Asked how she would vote, Ardern did not give a definitive answer.

"I've always been very open about the fact I do not believe that people should be imprisoned for personal use...on the flip-side, I also have concerns around young people accessing a product which can clearly do harm and damage them.

"I'll be looking to see where the debate takes us, the view from the public, and whether or not we can find a workable solution...what we have right now which is a justice-based approach to cannabis in this country isn't working. We can do better."

Ardern said her Government would introduce a Zero Carbon Act, an independent climate commission, and "making sure we have an all-gasses, all-sectors Emissions Trading Scheme".

"We all agree as well the need for having a tool to reach our goals. And that includes a price on carbon.

"It would only be fair of me to reflect that there was advocacy from New Zealand First around making sure there is support for the regions and that will be reflected strongly in our agreement with them."

The Greens' policy includes replacing the Emissions Trading Scheme (ETS) with a Kiwi Climate Fund that will charge polluters more. NZ First wants to abolish the ETS and invest money in other actions including research and development.

Ardern repeated her view that a public conversation and debate about New Zealand becoming a Republic needs to be had, but said it would not be a priority in the coming term.

Labour's 100 day plan will broadly stay the same, Ardern said, with a "very few" elements that might change.

"At this stage I believe we may have one addition and one subtraction. But otherwise it will essentially stay the same."

The 100 Day Plan released during the campaign includes:

• Make the first year of tertiary education or training fees free from January 1, 2018.
Increase student allowances and living cost loans by $50 a week from January 1, 2018.
• Pass the Healthy Homes Guarantee Bill, requiring all rentals to be warm and dry.
• Ban foreigners from buying existing houses.
• Issue an instruction to Housing New Zealand to stop the state house sell-off.
• Begin work to establish the Affordable Housing Authority and begin the KiwiBuild programme.
• Legislate to pass the Families Package, including the Winter Fuel Payment, Best Start and increases to Paid Parental Leave, to take effect from 1 July 2018.
• Set up a Ministerial Inquiry in order to fix our mental health crisis.
• Introduce legislation to make medicinal cannabis available for people with terminal illnesses or in chronic pain.
• Resume contributions to the New Zealand Superannuation Fund to help safeguard the provision of universal superannuation at age 65.
• Introduce legislation to set a child poverty reduction target and to change the • Public Finance Act so the Budget reports progress on reducing child poverty.
• Increase the minimum wage to $16.50 an hour, to take effect from 1 April 2018, and introduce legislation to improve fairness in the workplace.
• Establish the Tax Working Group.
• Establish the Pike River Recovery Agency and assign a responsible Minister.
• Set up an inquiry into the abuse of children in state care.
• Hold a Clean Waters Summit on cleaning up our rivers and lakes.
• Set the zero carbon emissions goal and begin setting up the independent Climate Commission.