Politics

One year in government: Coalition picks up the pace on policy

08:14 am on 15 October 2024

The coalition government has now been in power for a year. Photo: RNZ / Samuel Rillstone

One year after Election 2023, and the coalition government's time in power has been defined by job cuts, tax cuts and a fast-paced policy agenda.

Prime Minister Christopher Luxon promised to rein in government spending and fast-track growing the economy on the campaign trail.

He got straight to work with chief executive style flair - announcing a 100-day plan for the economy, law and order and public services.

About half of the 49 action points amounted to a bonfire that saw a pile of former Labour government policies go up in smoke.

Cost of living relief has been a major focus of the first year of this term, with increases to family tax credits and best start rates for new parents.

Finance Minister Nicola Willis sent explicit signals the government would also tighten its belt in response to tough economic conditions.

"We must put New Zealand on a firmer financial footing and this will require a much more disciplined approach to government spending decisions than has been the case in recent years," she said.

Coalition defined by job and tax cuts one year from election

The economy has been a priority for National since coming into power, but it has also been bogged down by its coalition partners' policies.

ACT's Treaty Principles Bill was the focus of much protest at Waitangi Day, with heated speeches and politicians giving as good as they got.

Meanwhile, thousands of public sector jobs went on the chopping block, with nearly all departments asked to identify savings of up to 7.5 percent.

This was all ahead of Budget 2024, which delivered National's big election promise of tax cuts.

The prime minister has been quick to demote National Party ministers that have not met his standards, sacking Melissa Lee from the media portfolio and Penny Simmonds over her handling of disability issues.

The same cannot be said for ministers from other parties, including New Zealand First's Casey Costello who has borne the brunt of a lot of scrutiny over smoking laws.

ACT's Nicole McKee has also been criticised for firearms reform and Karen Chhour for youth boot camps and the repeal of Section 7AA of the Oranga Tamariki Act.

The Fast-Track Approvals Bill has also faced tough criticism, but Infrastructure Minister Chris Bishop has made some changes.

"We have been in recession for the better part of two years. We've got to grow our way out of recession and fast track is about doing that."

The wheels are well and truly in motion this term, but there is still a risk they could fall off.

Economic indicators are improving with inflation and interest rates on a downwards trend.

But the government still has to contend with a beleaguered health system, further debate on ACT's Treaty Principles Bill and playing catch-up on the country's climate targets.

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