From the “no BS Budget” to the “Austerity Budget”, opposition fury remains focused on the Government’s pay equity upheaval with Budget 2025.
Protesters angry over the pay equity changes gathered on Parliament’s forecourt as Finance Minister Nicola Willis unveiled the Budget.
Opposition leader Chris Hipkins launched a blistering attack on the $12.8 billion saved through overhauling the claims regime, claiming the Government is paying “for its Budget by cutting the wages of working women”.
The costs of the pay equity changes were only revealed at the Budget today, despite being pushed through Parliament under urgency two weeks ago.
Speaking after Willis delivered her second Budget, the Labour leader accused the coalition of telling working women they were “worth less”.
“This is the Budget that said to working Kiwi women, they are worth less – in fact, nearly $3 billion a year less,” Hipkins told Parliament during the Budget debate, describing it as choosing “austerity and cuts” over investment.
The “savings” from the pay equity regime have become the lightning rod for opposition criticism, with unions also condemning the changes as an attack on women’s wages.
The coalition’s decision to halve the government contribution to KiwiSaver balances was also subject to criticism.
Hipkins accused the Government of “raiding” retirement savings, claiming an 18-year-old starting work would be $66,000 worse off at retirement due to the reduction in government contributions to people’s KiwiSaver balances.
PM defends ‘balanced’ approach
Prime Minister Christopher Luxon defended the Budget as “really balanced” and “perfect for New Zealand in the times we find ourselves in”, emphasising growth initiatives and cost-of-living support.
Willis described it as being the “no-BS Budget”, having earlier attacked Labour’s financial acumen repeatedly throughout the past week.
The Finance Minister defended the pay equity changes as necessary fiscal responsibility, saying the previous system had “got exponentially bigger than had ever been forecast” and was “completely out of control”.
“We’ve come up with a regime that strikes that balance fairly for women who have been underpaid and for taxpayers who are going to be paying for those settlements,” she said.
“When we came into Government, we saw that those costs had got exponentially bigger than had ever been forecast when the law was first passed. The fact that Labour did nothing about it and ignored it tells you everything you need to know.”
But Hipkins accused the Government of making women “worth less than tax breaks for landlords” and “worth less than subsidies for the oil and gas industry”.
Meanwhile, NZ First leader Winston Peters highlighted changes for seniors, including expanded rates rebates for SuperGold Card holders that will benefit approximately 66,000 people. Exploring the changes was part of his party’s coalition agreement.
ACT leader David Seymour said: “Billions in savings have come from Brooke van Velden’s reforms to ensure pay equity claims are fair and evidence-based.
“There are not only fiscal savings from the pay equity changes, there is a proud declaration that we don’t get wealthier arguing with ourselves, we get wealthier from investment, innovation, and genuine hard work.”
Green Party slams ‘cruel’ measures
Green Party co-leader Marama Davidson described the Budget as “proof” that the Government “does not care about regular people”, particularly criticising the figures outlined in the annual Child Poverty Report.
She suggested “more children and their families are going to be living in material hardship and poverty” as a result of the report. Davidson also criticised Jobseeker benefit changes, which impose more eligibility restrictions for 18- and 19-year-olds.
“It’s just proof again that this Government, with their full hearts, are really happy to just be cruel and mean to people who are already having a hard time,” she said.
“We know in both of our areas of work, actually, that there are young people who do not have the family support that these ministers take for granted.”
The Greens also attacked the Government’s decision to set aside a contingency of $200 million for potential Crown co-investment in new gas fields.
“In the middle of a climate crisis, the Government has decided not to invest in meaningful, resilient renewable energy, but has decided to offer a lifeline to fossil fuel executives,” said Greens co-leader Chlöe Swarbrick.
