Labour leader Chris Hipkins seized on Prime Minister Christopher Luxon’s controversial “be adult” comment to businesses and leadership challenge speculation during a visit to Rotorua today.
“You don’t call an in-person meeting unless you think there is a real fight on your hands,” Hipkins told media in response to Luxon calling an urgent caucus meeting tomorrow.
Hipkins claimed National was distracted by internal unrest while Labour focused on helping small businesses grow.
He was in Rotorua to unveil the final stage of Labour’s Small Business Action Plan, including support for start-ups and AI adoption.
The visit came almost two weeks after Luxon’s controversial comments to Rotorua business owners – first reported by the Rotorua Daily Post – saying businesses should “be adult” and move away from a “parent-child mentality” of waiting to see what the Government would do.
Luxon’s remarks were labelled out of touch and patronising, and he later apologised.
Hipkins told media Labour wanted to back small businesses, while the current Government “talks down to small business”.
Hipkins said 97% of businesses in New Zealand were small.
He described them as the “engine room” of the economy and said they deserved more support to adopt artificial intelligence (AI) and access start-up funding.
Labour’s policy announcement today included annual funding for a $2 million AI small business fund, boosting AI adoption and extending the AI Advisory pilot to $3m, and increasing the Founder and Startup Support Programme by $4m a year.
Hipkins said AI had the potential to help smaller operators improve productivity and compete with larger firms.
“We want to get behind them and support them so that they can grow and thrive here in New Zealand.”
Labour small business spokesman Dan Rosewarne said in the statement the party wanted to see small businesses get off the ground faster and have access to the same AI support as big competitors.
He said starting a business took more than a good idea.
“Founders need the right advice and support to turn that idea into something people will buy, build a team and find the investment they need to grow.
“Increasing investment in the Founder and Startup Support Programme will help more Kiwis get their ideas off the ground and into the world.”
During a question-and-answer session with media in Rotorua, Hipkins was asked about mounting speculation Luxon does not have the full support of the National Party and may face a leadership challenge.
“Once again, the National Party are busy fighting amongst themselves rather than tackling the issues that New Zealanders want to see them focused on,” he said.
“We’ve got businesses going into liquidation made worse by this National Government, and what are they focused on? Fighting amongst themselves.”
Asked whether a leadership change would alter Labour’s electoral prospects, Hipkins said National’s problems ran deeper than who occupied the top job.
“It doesn’t matter who leads the National Party,” he said.
“The National Party can only offer more of the same.
“No change of the leader at the top of the National Party can disguise the dismal track record in government.”
Hipkins suggested any successor would face the same challenges.
“Whoever they put at the top, they’re going to have to answer to that,” he said, referring to what he described as rising unemployment, business failures and a shrinking economy.
Despite repeated questions about potential leadership contenders and coalition implications, Hipkins declined to speculate.
Luxon addressed the speculation in a post on X today.
“It is my firm belief that division and disunity are a major distraction only 90 days out from the election.
“I also believe this distraction is unfair to the New Zealand people, and dedicated National Party candidates, supporters and volunteers, when there is so much at stake.”
He said the issue needed to be resolved quickly so he was calling an “urgent in-person Caucus meeting” in Wellington tomorrow morning.
Luxon refused to answer questions about whether he would resign or if he had the support of his caucus after he landed at Wellington Airport today.
He told media he would talk to them tomorrow.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.