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New Zealand heads to general elections amid risk of deep recession

New Zealand heads to general elections amid risk of deep recession

 
- Main contest expected between Prime Minister Chris Hipkins' Labour Party and opposition National Party
 

By Islamuddin Sajid

ANKARA (AA) - New Zealand’s main political parties are vying for public support with pledges to improve the economy, create more jobs and provide the best education facilities.

The island nation will go to the polls for a general election on Oct. 14.

Some 3.8 million registered voters will choose lawmakers for the country’s 120-seat parliament, 72 of which will be elected directly by voters in individual electorates around the country and 48 from political party lists (elected by all voters in the country) under a proportional system, which means that the proportion of votes a political party gets reflects the number of seats it has in parliament.

Each voter get two votes under New Zealand’s voting system. The first vote, or party vote, is for the political party the voter chooses. The second vote, called the electorate vote, is to choose the member of parliament the voter wants to represent the local electorate they live in.

The ruling Labour Party in its 74-page manifesto pledges to focus on education, providing the best facilities to students, creating more job opportunities and training and work for youth.

Prime Minister Chris Hipkins' party also said it plans to introduce free public transport for children under 13 and at half price for those under 25, according to Radio New Zealand.

They have also pledged to remove the Goods and Services Tax (GST) from fruit and vegetables, raise the minimum wage, introduce paid partner's leave, free basic dental care for those under 30 and increase the in-work tax credit for low-income families by NZ$25 a week.

The main opposition National Party also announced its 100-day plan on Sunday with some major promises. Its leader, Christopher Luxon, is hopeful of winning the polls and said they would focus on changes in legislation.

Under its plan, the party would remove Auckland's Regional Fuel Tax and restore the 90-day employment trial periods for all businesses

Luxon also plans to cut short parliament members’ holidays if his party wins.

On the education front, the party would ban cell phones in schools, while on the health front, it would extend free breast cancer screening for women aged up to 74.

- IMF warning

However, the country is facing economic challenges, with both major parties promising to control inflation and push the country’s economy forward.

In August, the International Monetary Fund (IMF) warned that New Zealand needed to control spending as the country could face prolonged high inflation until 2025.

"Growth is expected to slow to around 1% year-on-year in 2023 and 2024, with the possibility of a technical recession, despite some short-term boost from higher spending to address the North Island weather events and funding to meet central government cost pressures," 1 News reported, citing the IMF’s statement.

"Inflation is likely to decline gradually to the 1%–3% target range only in 2025, given the pick-up in non-tradable inflation," it said.

But Hipkins hopes that if his party returns to power, they can move the country forward.

"Kiwis deserve politicians to be straight up and honest with them. That’s why Labour’s plan is balanced, costed and credible – and independently verified. Unlike the National Party, we’re being transparent about our plan for the future," he wrote on Facebook last week.

Responding to Hipkins post, several social media users criticized his government for inflation while many others praised his policies and promised to vote for Labour.

"How come they screwed up the economy over the last six years, throwing our money around without any care?" Robert Beckman wrote on Facebook.

"A responsible and clear statement -- and with the economy back on track, Labour gets my vote," said another user, Hugh Steel.

The main contest is expected to be between Hipkins' Labour Party and the National Party, with a total of 19 political parties taking part in the elections.

Hipkins, who tested positive for COVID-19 during the election campaign, isolated himself on Sunday and announced that he would run his campaign online instead.

"A total of 567 candidates (electorate and list) are standing in this year’s election. This compares with 677 candidates in the 2020 election. It is similar to the number of candidates in previous elections: 534 in 2017, 554 in 2014, and 544 in 2011," said the Electoral Commission in a statement published on its website last week.

Hipkins became party leader and prime minister following Jacinda Ardern’s surprise resignation earlier this year.

Ardern, 43, announced her resignation from the top position in January, saying she no longer had "enough in the tank" to continue the nation’s top job.

In the 2020 elections, the Labour Party led by Ardern won 65 seats, allowing them to form the government.

*Writing by Islamuddin Sajid

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