Govt responds to falling poll numbers with fuel tax cut, border reopening
Last week’s dramatic poll numbers that saw Labour trailing behind the opposition National Party for the first time in two years seems to have forced the government to come out of slumber, resulting in two key decisions before the end of the mid-week.
The first decision was the unprecedented slashing of the fuel tax, in a bid to arrest the spiralling inflation and rising living cost crisis after being in denial for weeks that there was such a crisis, and the other decision was bringing forward the staged reopening of New Zealand borders to support the country’s beleaguered tourism sector.
The dramatic numbers from the last week’s 1News Kantar opinion poll that saw Labour dropping to 37 percent support - the party's lowest since 2017, and National rising to 39 percent – their best return in almost two years had a clear impact on the government’s newfound vigour to act fast and decisively.
On Monday, March 14, Prime Minister Jacinda Ardern announced the slashing of fuel taxes from midnight by 25 cents a litre as also a 50 percent discount on all public transport travel as an immediate measure to address the rise in living cost crisis.
It is expected that the tax reduction will cost some $350 million – and will save motorists $11 to $17 per average fill-up, depending on the vehicle and the type of duel consumed. The halving of the cost of public transport will cost around $25m to $40m.
Slashing of excise tax on the fuel by any government is unprecedented by any standards and coming from a government that has been repeatedly accused by the political opposition of indulging in “tax grab,” to quote National’s Leader Christopher Luxon, is indeed extraordinary.
Lately the government has come under intense pressure to help alleviate three-decade high inflation, which had witnessed a gradual hike in petrol prices, much before the global market disruptions precipitated by Russia’s invasion of Ukraine as per government’s seemingly sluggish explanation of the steep hike in petrol prices.
However, what seems to have moved the government fast on this critically important issue for the New Zealanders is the flight of voters from Labour’s fold who had supported the government’s response to Covid pandemic in recent years, to the National’s fold.
Most importantly, it is the steep rise of the popularity of National Leader Christopher Luxon as opposed to Prime Minister Jacinda Ardern, who had till now been largely unchallenged as the preferred prime minister of the country that might have rung alarm bells within the government forcing it to slash petrol tax and relieve some pressure from the back pockets of New Zealanders.
To be fair to the government and National as well, this swing of numbers in the poll, is not because of the latter’s successful hit on the government on any particular issue, including the “tax grab” jibe by its Leader Luxon in the state of nation address, but is largely because of growing fatigue with the government’s obsession of managing the Covid pandemic bit conservatively, often at the cost of key parameters of the economy, which have started to affect Kiwis.
The second major decision by the government this week, announced with much fanfare by Prime Minister Jacinda Ardern and the Minister of Tourism Stuart Nash on Wednesday, March 16 of fast-tracking of border reopening also seem to be driven by dipping poll numbers and expedited by a Stats NZ press release showing a massive dip in incoming travellers last year.
Earlier on Monday, Stats NZ have quietly released data of incoming international travellers that witnessed a massive cull of numbers in 2021, despite eight long months of Covid-free and lockdown free run and minimal travel disruptions. (The Delta lockdown since August 2021 and accompanied lockdowns may have disrupted the incoming international travel).
According to Stats NZ press release, the overseas visitor arrivals were 205,000 in the January 2022 year, down 386,000 from the January 2021 year.
The biggest decreases were in arrivals from United States (down 78,000), Australia (down 58,000), United Kingdom (down 54,000), Germany (down 22,000), and Canada (down 20,000).
It is these dwindling numbers of travellers that Ardern and her government are seeking to bring back to NZ shores, and expeditiously, through the latest border reopening announcement.
"We are a safe place to visit, and NZ will be ready with open arms," Ardern said.
Transtasman travellers have traditionally made-up 40 percent of tourists to NZ and will be able to travel in time for the Australia school holidays, and provide a boost for the winter ski season, Ardern further added.
By expediting these two decisions, on which the government had been sitting relatively for quite some time, the government is indeed seeking to turn the tide of falling poll numbers.
Last week’s dramatic poll numbers that saw Labour trailing behind the opposition National Party for the first time in two years seems to have forced the government to come out of slumber, resulting in two key decisions before the end of the mid-week.
The first decision was the unprecedented...
Last week’s dramatic poll numbers that saw Labour trailing behind the opposition National Party for the first time in two years seems to have forced the government to come out of slumber, resulting in two key decisions before the end of the mid-week.
The first decision was the unprecedented slashing of the fuel tax, in a bid to arrest the spiralling inflation and rising living cost crisis after being in denial for weeks that there was such a crisis, and the other decision was bringing forward the staged reopening of New Zealand borders to support the country’s beleaguered tourism sector.
The dramatic numbers from the last week’s 1News Kantar opinion poll that saw Labour dropping to 37 percent support - the party's lowest since 2017, and National rising to 39 percent – their best return in almost two years had a clear impact on the government’s newfound vigour to act fast and decisively.
On Monday, March 14, Prime Minister Jacinda Ardern announced the slashing of fuel taxes from midnight by 25 cents a litre as also a 50 percent discount on all public transport travel as an immediate measure to address the rise in living cost crisis.
It is expected that the tax reduction will cost some $350 million – and will save motorists $11 to $17 per average fill-up, depending on the vehicle and the type of duel consumed. The halving of the cost of public transport will cost around $25m to $40m.
Slashing of excise tax on the fuel by any government is unprecedented by any standards and coming from a government that has been repeatedly accused by the political opposition of indulging in “tax grab,” to quote National’s Leader Christopher Luxon, is indeed extraordinary.
Lately the government has come under intense pressure to help alleviate three-decade high inflation, which had witnessed a gradual hike in petrol prices, much before the global market disruptions precipitated by Russia’s invasion of Ukraine as per government’s seemingly sluggish explanation of the steep hike in petrol prices.
However, what seems to have moved the government fast on this critically important issue for the New Zealanders is the flight of voters from Labour’s fold who had supported the government’s response to Covid pandemic in recent years, to the National’s fold.
Most importantly, it is the steep rise of the popularity of National Leader Christopher Luxon as opposed to Prime Minister Jacinda Ardern, who had till now been largely unchallenged as the preferred prime minister of the country that might have rung alarm bells within the government forcing it to slash petrol tax and relieve some pressure from the back pockets of New Zealanders.
To be fair to the government and National as well, this swing of numbers in the poll, is not because of the latter’s successful hit on the government on any particular issue, including the “tax grab” jibe by its Leader Luxon in the state of nation address, but is largely because of growing fatigue with the government’s obsession of managing the Covid pandemic bit conservatively, often at the cost of key parameters of the economy, which have started to affect Kiwis.
The second major decision by the government this week, announced with much fanfare by Prime Minister Jacinda Ardern and the Minister of Tourism Stuart Nash on Wednesday, March 16 of fast-tracking of border reopening also seem to be driven by dipping poll numbers and expedited by a Stats NZ press release showing a massive dip in incoming travellers last year.
Earlier on Monday, Stats NZ have quietly released data of incoming international travellers that witnessed a massive cull of numbers in 2021, despite eight long months of Covid-free and lockdown free run and minimal travel disruptions. (The Delta lockdown since August 2021 and accompanied lockdowns may have disrupted the incoming international travel).
According to Stats NZ press release, the overseas visitor arrivals were 205,000 in the January 2022 year, down 386,000 from the January 2021 year.
The biggest decreases were in arrivals from United States (down 78,000), Australia (down 58,000), United Kingdom (down 54,000), Germany (down 22,000), and Canada (down 20,000).
It is these dwindling numbers of travellers that Ardern and her government are seeking to bring back to NZ shores, and expeditiously, through the latest border reopening announcement.
"We are a safe place to visit, and NZ will be ready with open arms," Ardern said.
Transtasman travellers have traditionally made-up 40 percent of tourists to NZ and will be able to travel in time for the Australia school holidays, and provide a boost for the winter ski season, Ardern further added.
By expediting these two decisions, on which the government had been sitting relatively for quite some time, the government is indeed seeking to turn the tide of falling poll numbers.
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