Labour says ‘good jobs are at the heart’ of its plan to address the cost of living as it promises to build more homes, fix school buildings and hospitals while creating jobs

The Labour Party says if elected into government, it will build homes, improve schools and fix hospitals while creating jobs for New Zealanders.

On Thursday, Labour launched its Start work now policy, which focuses on schools, hospitals, social housing, creating work for local businesses and supporting tradies into work.

“This election is about the cost of living," its policy document says. “The cost of living is not only about what you pay at the checkout or when you fill up the car. It is also about whether you have a good job and enough money coming in to cover the bills."

“That is why good jobs are at the heart of Labour’s plan to address the cost of living," the document says.

If elected, Labour planned to: 

• Get Kāinga Ora to build more social housing
• Provide “reliable” funding for community housing providers so they can plan ahead, “alongside a government guarantee that reduces borrowing costs and helps funding go further”
• Provide nearly every school with funding to improve its buildings and grounds, with the party saying this would create work for local tradies. Labour wants work to begin on schools within 12 to 24 months if they’re elected
• Direct Health New Zealand to finish repair projects already on its books and once that’s done, Labour will invest to fix more hospital buildings and essential systems

Alongside this proposal is the party’s apprenticeship boost announcement it made at its congress in June, and its Māori-led trades training policy launched in August. Labour also pledged in June to reduce the cost of finance for community housing providers by raising the Crown guarantee for Community Housing Funding Agency (CHFA) social bonds. 

'Fully funded, ready to start in a year'

"Labour has funded this plan and will use proven ways of getting the work under way. This plan will be funded from future operating and capital allowances," The Start work now policy document says.

For the education package, Labour would allocate $450 million to improve the buildings and grounds of NZ schools - with its policy document saying this would be made up of $400 million in capital funding for state schools and $50 million in operating funding for the proprietors of integrated schools, allocated on a similar basis.

In terms of health, $200 million in capital funding would go towards what the party calls “the National Remediation Programme and the Small-Scale Remediation projects.”

“The housing package allocates $2.9 billion of capital for Kāinga Ora to build more state houses. It also allocates $760 million in operating funding to cover the additional Income-Related Rent Subsidy and operating costs for Kāinga Ora and Community Housing Providers,” the policy document says.

‘We can do all three while creating good jobs for Kiwis'

Pointing to unemployment being the highest it has been for more than a decade, Labour leader Chris Hipkins says his party will “build the infrastructure New Zealand needs, create jobs and ensure the benefits return to local businesses and communities.”

“Right now, homes need building, schools need improving and hospitals need fixing. We can do all three while creating good jobs for Kiwis,” he says.

“When the Government funds a building project, the benefits go well beyond the worksite. Builders hire tradies, tradies buy materials, suppliers get more orders, apprentices get hours and local businesses benefit from workers spending in their communities."

“Labour will use government investment to get essential work underway and give businesses the certainty they need to keep people in work,” Hipkins says.

Labour jobs and incomes spokesperson Ginny Andersen says unemployment under National is at an 11-year high. 

"We need to get Kiwis back to work. That means building homes, fixing schools and repairing hospitals, not sitting on our hands. New Zealand has a backlog of work that needs doing. Homes need building, schools need improving and hospitals need fixing,” Andersen says.

“Labour will get that work underway while creating opportunities for Kiwis to get back into work and businesses to win new contracts."

“This is about putting government investment to work – improving public infrastructure, supporting local businesses and giving the construction sector greater certainty.”