PM Christopher Luxon in studio with Mike Hosking after National accuses Labour of $18b spending hole

Prime Minister Christopher Luxon is navigating a political storm following accusations that Labour's policies contain a significant $18.2 billion funding shortfall. His Finance Minister, Nicola Willis, highlighted this "yawning gap" between Labour's proposals and available funds, a claim Labour has dismissed as a "desperate" tactic by National.

Luxon's recent appearance at Fieldays, a major agricultural event, saw him championing initiatives aimed at the farming sector. These included promises of up to $51 million for emissions-reducing farm technology and $59 million for six commercial land-based projects. He also reaffirmed the coalition government's commitment to the Paris Agreement, emphasizing that New Zealand would meet its climate targets without extensive offshore spending.

However, the coalition landscape appears complex. At Fieldays, NZ First leader Winston Peters adopted a notably independent stance, criticizing National's climate targets and the Indian Free Trade Agreement. Peters also suggested farmers should view NZ First as an "insurance" policy, implying a divergence from National's approach. His remarks, alongside those of new NZ First candidates like Stuart Nash, who contrasted NZ First's action-oriented approach with Labour's tendency to form "working groups," underscore potential tensions within the government.

Adding to the political turbulence is the controversy surrounding Labour's candidate list, particularly Police Superintendent Rakesh Naidoo's inclusion. Concerns have been raised by National MP Mark Mitchell and Police Commissioner Richard Chambers regarding Naidoo's access to sensitive information. Labour's police spokeswoman, Ginny Andersen, has accused Mitchell of improperly influencing the Police Commissioner, allegations both Mitchell and Luxon deny.

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The difference to working with Labour is that while Labour may set up “working groups” and “consider things”, NZ First “is the party that does stuff”.