Labour vows repeal of pay equity changes but stops short of full blueprint

Questions hang over what Labour’s promised repeal of the Government’s pay equity changes would actually look like if it wins power in November.

Opposition leader Chris Hipkins has committed to reinstating pay equity, but was not able to say if the principles would be the same as the previous iteration and how much it would cost, instead accusing the Government of appearing to make up figures - a statement the Government rejects. 

The unofficial People's Select Committee, formed with high profile ex-MPs from across the House in response to the lack of select committee process from the changes to the pay equity legislation last year, released its report recommending repealing the changes and reinstating cancelled claims without requiring a restart of the pay equity process.

Former National MP Jackie Blue told the audience, "if the art of politics is reading the room, half of the audience has already left, women and affected families will vote accordingly, so it is an election issue".

Hipkins, who attended the report release in Wellington, was asked if he would reinstate it to the full amount.

"Are we committed to reinstating pay equity? Yes, absolutely. How much will that cost? We're trying to work that through at the moment, because the government aren't releasing any information on how they reach the figure that they appear to have just made up."

If the principles would be exactly the same if Labour were to reverse the pay equity changes, Hipkins said he wanted to consider the proposed changes that the Pay Equity Committee suggested. 

Labour Deputy Leader Carmel Sepuloni also asked the select committee: "In relation to the money - we've been trying to ascertain where they have re diverted the funding that Treasury has said has now been pulled out of pay equity."

"We've been able to see that about half of it got rediverted towards investment boost, but so much of the information has been redacted, and we can't see where the other six, $7 billion has gone. And that's important information for public transparency."

Former National MP Marilyn Waring said that "everything that would answer that question is redacted". 

In response, a spokesperson from Finance Minister Nicola Willis' office said the savings through the changes to the pay equity regime were outlined in her Budget day speech.

"Making those changes means the Government can re-purpose $2.7b a year, on average, towards Budget priorities like health, education, and law and order.

"A one-off $1.8 billion has also been repurposed from previous contingencies and put towards capital expenditure in this Budget, supporting investments in new hospitals, schools and other infrastructure."

They pointed to Budget 2025, where it says some funding remains in the contingency pool, which was not individually disclosed "due to negotiation sensitivity"

ACT leader David Seymour described Hipkins' comments as, "fiscal denialism".

“One way or another, the fiscal chickens will come home to roost. If Chris Hipkins genuinely believes Treasury’s numbers are wrong, he should do what real leaders do: publish his costings, show his assumptions, and tell New Zealanders what he will cut, tax, or borrow to pay for his promise."

Willis said in her Budget speeches she was; "absolutely committed to pay equity, but we have to be sure that future settlements stick to fixing pay discrepancies between occupations that are based only on sex-based discrimination, and not for other reasons"

"Otherwise, pay equity negotiations simply become a surrogate for a normal wage bargaining round."