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Home / New Zealand / Politics

Election 2023: Green Party launches campaign with wealth tax priority as it warns Labour not to ‘take support for granted’

Michael  Neilson
By Michael Neilson
Senior political reporter, NZ Herald·NZ Herald·
23 Jul, 2023 03:18 AM5 mins to read

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Greens co-leaders Marama Davidson and James Shaw say they won’t hesitate to sit on the cross-benches if they don’t get their way in any possibly post-election policy negotiations. Video / Mark Mitchell

The Greens are doubling down in their bid for a wealth tax, saying Prime Minister Chris Hipkins’ rule-out is meaningless if voters want one. They have warned they won’t hesitate to sit on the cross-benches if they don’t get their way.

It comes after Te Pāti Māori, which Labour would also most likely need if in a position to form a government after October 14, sent an equally strong message to Hipkins that, based on current polling, he won’t be calling the shots on tax policy.

Hipkins has said he won’t budge, responding that the two smaller parties are “welcome” to try to get such a policy over the line without Labour’s support. He previously said they needed to be “careful” over their bottom lines or they would not be part of any governing arrangements.

Speaking at the Green Party election campaign launch in central Wellington today, co-leaders Marama Davidson and James Shaw each made clear how highly the party values tax reform.

They both referenced a Government study that found 311 families owned more wealth than the bottom 2.5 million New Zealanders combined and paid less tax as a proportion of their income than average.

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The party has proposed a wealth tax of 2.5 per cent on assets over $2m owned by individuals, or $4m owned by couples, with tax relief provided to those on lower incomes and an “Income Guarantee” through a radical overhaul of Working for Families.

Hipkins has ruled out a wealth or capital gains tax while he is leader of Labour, saying now was “not the time”. However, Shaw said it was up to voters to state their case.

He said any party the Greens looked to work with could not take their “support for granted”. If they received enough support and if their members agreed, the Greens could opt out of a traditional coalition deal and instead sit on the cross-benches – a loosely defined position to support a government in certain critical areas but not others.

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“There is a backstop there, which if plan A doesn’t work out, and other political parties aren’t willing to face up to those challenges, then yes, it’s entirely possible that the Green Party membership will decide that sitting in the cross-benches and making the Government work for every single piece of legislation is credible,” Shaw said.

Greens co-leader Marama Davidson told the campaign launch that the two main parties lacked the courage to do anything meaningful in tackling either poverty or climate change. Photo / Mark Mitchell
Greens co-leader Marama Davidson told the campaign launch that the two main parties lacked the courage to do anything meaningful in tackling either poverty or climate change. Photo / Mark Mitchell

Davidson said the two main parties lacked the courage to do anything meaningful in tackling either poverty or climate change – the biggest issues facing the country and the world – instead opting for scoring political points.

“When you look at your Parliament after the 14th of October, make sure it is filled with politicians who don’t hold long-term ambitions for power, but who just want to get shit done for people.”

Cheers of “shame” could be heard in the audience as both co-leaders pointed out instances in which they claimed the main parties were “fundamentally wrong”.

In a year of climate change-fuelled disasters, Davidson called out National for campaigning to reopen oil and gas exploration, and Labour for slashing emissions reduction policies, leaving a hole in the first emissions budget.

There was also something “fundamentally wrong” that neither had the ambition to shake up the tax system.

“Let’s be clear: there has never been a better time to shake up our tax system,” Shaw said, which received the biggest cheer and included a veiled reference to the party’s campaign slogan: “The Time Is Now”.

The speeches also included warnings about a National and Act government, which they said could undo a lot of the progressive policy achievements, particularly around climate change.

“This is not just an election,” Shaw said. “This is a make-or-break moment for Aotearoa.”

“Let’s be clear: there has never been a better time to shake up our tax system,” James Shaw told the campaign launch. Photo / Mark Mitchell
“Let’s be clear: there has never been a better time to shake up our tax system,” James Shaw told the campaign launch. Photo / Mark Mitchell

The Public Trust Hall in Wellington was full of party supporters but not packed to the rafters, with just over 100 seated and a few dozen standing.

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It was a “classically cold and wet Wellington day” after all, Davidson said.

Big chunks of their speeches were also devoted to encouraging volunteers for the campaign.

Shaw said they had already had the biggest start of any campaign. “Hundreds of volunteers, up and down the country, have already picked up a phone or knocked on the doors of more than 30,000 people.”

There were also strong statements about the electorate campaigns in Rongotai, where Julie Anne Genter is standing, and Wellington Central, where Tamatha Paul is standing.

Davidson and Shaw told the campaign launch it was very unlikely that members would support the prospect of working with NZ First again. Photo / Mark Mitchell
Davidson and Shaw told the campaign launch it was very unlikely that members would support the prospect of working with NZ First again. Photo / Mark Mitchell

Shaw referenced the Auckland shooting on Thursday, paying respects to the victims and their families and first responders, but also calling for an evidence-based discussion about crime.

“Our political leaders owe us a conversation based on evidence. I say that, because the fear and anxiety National and Act have filled our headlines and social media feeds with, over the last 12 months, appals me.

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“They are using fear as a motivator because they have nothing else. No vision. No courage. No moral compass.

“They know that the knee-jerk, back-of-an-envelope ideas they are putting forward work for nothing other than getting a ‘tough’ looking headline.”

Shaw said harsher punishments without meaningful efforts to combat poverty and inequality “won’t make our communities safer”.

The Greens campaign launch comes as NZ First looks to stage a comeback after being voted out of Parliament in 2020.

Current polls show such a feat is unlikely, but the party has surprised in the past.

It was no secret the Greens and NZ First did not get along when in coalition with Labour in the 2017 term, with both parties working to block each other’s ideas.

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Shaw and Davidson said they had not given much thought to their rivals returning, but indicated it would be very unlikely that members would support the prospect of working with NZ First again.

“They’re going in exactly the opposite direction of what the Greens are doing,” Davidson said.

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