Christopher Luxon’s tone problem resurfaces over change to coalition tax deal - Audrey Young

OPINION

This is a transcript of Audrey Young’s politics newsletter. To sign up for this newsletter or Thursday’s subscriber-only Premium Politics Briefing, click on your profile at nzherald.co.nz and select ‘Newsletters’. For a step-by-step guide, click here.

Welcome to the Politics Briefing. Prime Minister Christopher Luxon got quite prickly in his press conference yesterday when faced with questions about why the reinstatement of interest deductibility on investment properties had changed since the coalition agreement was signed with Act.

Of course it is not unusual for election promises to be diluted or changed in post-election negotiations with other parties. But once the deal is sealed, it is unusual to see a deviation so soon - the upshot of the changes is that the phasing-in has been changed to reduce the overall cost, but the overall cost is still $800 million beyond what National estimated in the election campaign.

The trouble with Luxon’s response to questions about changes to the sealed deal is not what he says but how he says it. He dismisses it as though it weren’t important enough to even ask about. It was something picked up this morning by Mike Hosking when Luxon appeared in his regular Tuesday spot on Newstalk ZB. It is reasonable to adjust a fixed plan as circumstances allow. But it should not be dismissed as something done lightly. And if it has to be changed now, when the ink on the coalition deal is barely dry, what else might change?

A lot of the 100-day plan was pushed through under urgency, but it has been two issues unconnected to it that have had a resounding impact: the plan to cut the school lunch programme by up to a half and the PM’s entitlement to the entitlement - his $52,000 housing allowance, since repaid. A poll last Friday (by his party’s own pollster) suggested Luxon has taken a big hit in popularity, but today he rejected the suggestion he has lost his political radar. “I think we’ve done a kick-arse job on the 100-day plan, to be brutally honest with you,” he told Hosking.

Protest like it’s 1975

Foreign Minister Winston Peters is on a visit to India, Indonesia and Singapore, and Sports Minister Chris Bishop is in Geneva to attend an executive committee meeting and symposium of the World Anti-Doping Agency (Wada) and then on to London in his capacity as Infrastructure Minister.

If you want an echo to the anti-American ′70s, read my report on the somewhat creative protest last Friday which forced US Under-Secretary of State Bonnie Jenkins to abandon her talk at Victoria University. She is the State Department’s lead official on Aukus, the pact involving the US and UK which will allow Australia to acquire nuclear-powered submarines. I got a copy of her speech anyway and have run it at the bottom of the story.

Quote unquote

Green Party co-leader Chloe Swarbrick. Photo / Alex Burton

“Don’t let this Government’s bully-boy behaviour silence you. Let it motivate you. We’ve been here before with regressive conservatives. It was organising by regular people that changed the course of history” - Chloe Swarbrick on becoming co-leader of the Greens.

“A massive salad of soundbites is not going to cut it. She is going to have to think deeper and harder about what solutions the Green Party is offering” - Act leader David Seymour’s answer when asked what advice he would give Swarbrick.

Micro quiz

For 10 points, the leader of which country is visiting New Zealand, and for 90 points, what is his name? (Answers below.)

Brickbat

Goes to the absolute drongo who told David Seymour after his bike crash: “You know what, sometimes you get exactly what you deserve.”

Bouquet

Chief Ombudsman Peter Boshier. Photo / Dom Thomas, RNZ

Goes to Peter Boshier (the best Ombudsman we’ve had in ages) for pointing out how ridiculous it is to force him to retire at age 72 - although not quite as ridiculous as making our judges retire at age 70, just when they’re getting the hang of it. How about using parliamentary urgency to change their forced retirement age to 75 so taxpayers can get their money’s worth?

Latest political news and views

Tax change: The Government has decided not to give residential property investors as much tax relief as National promised Act in the parties’ coalition agreement.

Poll: Prime Minister Christopher Luxon’s favourability has crashed 16 points in the latest monthly Taxpayers’ Union-Curia Poll.

Bridges’ new job: Former National Party leader Simon Bridges has been appointed the chair of NZ Transport Agency Waka Kotahi.

Tax cost: The cost of reinstating full interest deductions for residential property has increased by $800 million to $2.9 billion, according to Government data.

Seymour’s crash: Act Party leader David Seymour came a cropper on his electric bike in Parnell, Auckland on Sunday.

Oil and gas: National and Act are willing to consider offering oil and gas companies compensation should they be subject to another ban by a future Government.

Greens leadership: Chlöe Swarbrick has been confirmed as the new co-leader of the Green Party, and immediately let rip at the Government’s “bully boy behaviour”.

Military staffing: NZ’s military has been left to resolve its own staffing “crisis”, with Defence Minister Judith Collins saying she has advanced nothing to Cabinet about attrition and recruitment.

Uni protests: A top US official in the Aukus programme had to abandon her speech at Victoria University after it was disrupted by protesters.

Opinion: Claire Trevett assesses the coalition Government’s first 100 days in power.

Ardern doco: The NZ Film Commission has approved $800,000 in public funding for a $3.2 million documentary on Dame Jacinda Ardern.

Climate cost: Taxpayers face a massive climate bill, but it’s missing from the Government’s books.

Law and order: One of the coalition Government’s achievements in its first 100 days was the easiest of ticks after officials said it required “no actions” to implement.

Quiz answer: Vietnam’s Prime Minister, Pham Minh Chinh.

Audrey Young is the New Zealand Herald’s senior political correspondent. She was named Political Journalist of the Year at the Voyager Media Awards in 2023, 2020 and 2018.

For more political news and views, listen to On the Tiles, the Herald’s politics podcast.