PM Christopher Luxon lauds scrapping Auckland fuel tax, increasing paid parental leave

Prime Minister Christopher Luxon is lauding his Government’s efforts to ease the high cost of living, namely ditching the Auckland regional fuel tax and increasing paid parental leave.

Speaking from Pakuranga alongside Transport Minister Simeon Brown, Luxon said family budgets had been squeezed by the increase of prices, leading to higher unemployment.

He said his Government was committed to reducing the cost of living. He noted how inflation was falling, but accepted there was more needed to be done to drive down cost pressures.

It comes as the Government reaches the final day of its second-quarter action plan.

In a statement this morning, Luxon said Auckland motorists would save 11.5 cents per litre with the regional fuel tax removed from tomorrow.

“We are determined to reduce the cost of living pressures for hardworking New Zealanders and this, as well as other July 1 changes, will go some way to easing that pressure on them.”

On congestion charging and time of use charging, Brown said decisions hadn’t yet been made on when that might be introduced.

”We’re still working through that.”

He said it would happen this term, as per National’s coalition agreement with Act.

Also introduced tomorrow would be the FamilyBoost early childhood education tax rebate, which would allow parents to claim back up to $150 per fortnight in fees.

Paid parental leave would also be increased from $712.17 to $754.87.

“This will help families get the support they need in the early and most important stages of a child’s life,” Luxon said.

The end of June meant it was also the end of the Government’s second-quarter action plan featuring 36 items.

As reported by the Herald on Thursday, there were still a few items yet to be ticked off in the final days.

Health Minister Dr Shane Reti released the Government's policy statement on health today. Photo / Mark Mitchell

Health Minister Dr Shane Reti managed to scrub one off the list today as he released the Government’s policy statement on health, essentially mapping out his expectations of the public health system in the next three years.

Some of the remaining items that haven’t been announced included taking decisions on investment in renewable energy generation and housing growth.

However, the wording of those items enabled the Government to claim the items had been achieved, as it was possible Cabinet had made decisions but hadn’t publicised them yet.

It was understood Luxon would detail how successful he’d been in achieving everything on his second-quarter plan at tomorrow’s post-Cabinet press conference.

Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.