Speaking before the Senate Banking Committee this week, US Treasury Secretary Scott Bessent explicitly stated that the US deliberately caused a financial crisis in Iran with the goal of fomenting civil unrest in the country.

Asked by Senator Katie Britt what more the US could be doing to place pressure on the Ayatollah and Iran, Bessent explained on Thursday that the Treasury Department had implemented a “strategy” designed to undermine the Iranian currency which crashed the economy and sparked the violent protests we have seen throughout the country.

“One thing we could do at Treasury, and what we have done, is created a dollar shortage in the country,” Bessent said. “At a speech at the Economic Club in March I outlined the strategy.

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It came to a swift and I would say grand culmination in December when one of the largest banks in Iran went under.

“There was a run on the bank, the central bank had to print money, the Iranian currency went into free fall, inflation exploded, and hence we have seen the Iranian people out on the street.”

This is not the first time Bessent has made these admissions. Speaking at the World Economic Forum in Davos last month, the Treasury Secretary said the following:

“President Trump ordered Treasury and our OFAC division, Office of Foreign Asset Control, to put maximum pressure on Iran.

And it’s worked, because in December, their economy collapsed. We saw a major bank go under; the central bank has started to print money. There is dollar shortage.

They are not able to get imports, and this is why the people took to the street. So, this is economic statecraft, no shots fired, and things are moving in a very positive way here.”

Following these remarks, Professor Jeffrey Sachs and Sybil Farres wrote the following for Common Dreams:

“What Secretary Bessent describes is of course not ‘economic statecraft’ in a traditional sense. It is war conducted by economic means, all designed to produce an economic crisis and social unrest leading to a fall of the government. This is proudly hailed as ‘economic statecraft.’

“The human suffering caused by outright war and crushing economic sanctions is not so different as one might think. Economic collapse produces shortages of food, medicine, and fuel, while also destroying savings, pensions, wages, and public services.

Deliberate economic collapse drives people into poverty, malnutrition, and premature death, just as outright war does.”

Bessent laid out these plans in advance at the Economic Club of New York back in March of last year, saying the following:

“Last month, the White House announced its maximum pressure campaign on Iran designed to collapse its already buckling economy. The Iranian economy is in disarray; 35 peRcent official inflation, has a currency that has depreciated 60 percent in the last 12 months, and an ongoing energy crisis.

“I know a few things about currency devaluations, and if I were an Iranian, I would get all of my money out of the Rial now.

“This precarious state exists before our Maximum Pressure campaign, designed to collapse Iranian oil exports from the current 1.5–1.6, million barrels per day, back to the trickle they were when President Trump left office.

“Iran has developed a complex shadow network of financial facilitators and black-market oil shippers via a ghost fleet to sell oil, petrochemical and other commodities to finance its exports and generate hard currency.

“As such, we have elevated a sanctions campaign against this export infrastructure, targeting all stages of Iran’s oil supply chain. We have coupled this with vigorous government engagement and private sector outreach.

“We will close off Iran’s access to the international financial system by targeting regional parties that facilitate the transfer of its revenues. Treasury is prepared to engage in frank discussions with these countries. We are going to shut down Iran’s oil sector and drone manufacturing capabilities.

“We have predetermined benchmarks and timelines. Making Iran Broke Again will mark the beginning of our updated sanctions policy. Watch this space.”

The US has been orchestrating plans to foment unrest in Iran by causing economic strife for years. In 2019 Trump’s previous Secretary of State Mike Pompeo openly acknowledged that the goal of Washington’s economic warfare against Iran was to make the population so miserable that they “change the government”, cheerfully citing the “economic distress” the nation had been placed under by US sanctions.

As unrest tore through Iran last month, Trump egged protesters on and encouraged them to escalate, saying “To all Iranian patriots, keep protesting, take over your institutions, if possible, and save the name of the killers and the abusers that are abusing you,” adding, “all I say to them is help is on its way.”

Deliberately trying to ignite a civil war in a country by immiserating its population so severely that they start attacking their own government out of sheer desperation is one of the most evil things you can possibly imagine.

But under the Western empire it’s just another day. They’re doing it in Iran, and they’ve also aggressively ramped up efforts to do it in Cuba, where the government has just announced it will be rationing oil as the US moves to strangle the island nation into regime change.

A lot of attention is going into The Epstein Files right now, and understandably so. But it’s worth noting that nothing in them is as depraved and abusive as what our rulers are doing right out in the open.

Caitlin Johnstone is an Australian independent journalist and poet. Her articles include The UN Torture Report On Assange Is An Indictment Of Our Entire Society. She publishes a website and Caitlin’s Newsletter. This article is republished with permission.

Parliament has ended for another term, shutting down ahead of the Aotearoa New Zealand election campaign with a debate where many focused on attacking their political opponents.

Labour Party leader and Prime Minister Chris Hipkins warned New Zealanders: “We can continue to move forward under Labour, or we can face a coalition of cuts, chaos, and fear: A National/ACT/New Zealand First government that would be one of the most inexperienced and untested in our history.”

Parliament typically rises at the end of a term with an adjournment debate, and Thursday’s seemed to confirm the coming election on October 14 would be full of negative campaigning.

• READ MORE: Other NZ election reports

Here is a brief summary of the political leaders’ speeches:

Chris Hipkins (Labour):

Labour’s leader and incumbent Prime Minister Chris Hipkins launched into the closing adjournment debate reflecting on the eventful past six years. He said his own tenure in the role had not broken that mould, with the Auckland floods sweeping in just two days after he was sworn in, followed by Cyclone Gabrielle.

“Ours is a government that has been forged through fire. Every challenge that has been thrown our way, we have risen to that,” he said.

He said Labour had achieved a lot, but there was more to do — and much at stake in the coming election.

“We can continue to move forward under Labour, or we can face a coalition of cuts, chaos, and fear: A National/ACT/New Zealand First government that would be one of the most inexperienced and untested in our history, a government who want to wind the clock back on all of the progress that we are making.”

He praised Finance Minister Grant Robertson’s handling of the economy, highlighting a 6 percent larger economy than before the covid-19 pandemic, record low unemployment, and wages “growing faster under our government than inflation”.

He soon returned to attacking political opponents, however.

“Now is not the time to turn back. Now is not the time to stoke the inflationary fires with unfunded tax cuts as the members opposite promised, and it is not a time to turn our backs on talent by introducing a talent tax,” he said, referring to National’s plan to increase levies on visas.

“National wants to turn the clock backwards; we want to keep moving forward.”

He finished by saying Labour had a positive vision for New Zealand, before his final parting words: “and I wave goodbye to Michael Woodhouse, too, because he’s guaranteed not to be here after the election”.

Christopher Luxon (National):

The National leader said Hipkins’ speech should be one of apology, “to the parents and the kids who actually have been let down by an education system …to all the people who have waited for endless times and hours in hospital emergency departments … to all the victims of ram raids in dairies and superettes … to all the people that are lying awake at night worried about how they’re going to make their payments and keep their house.”

He continued with the requisite thanks such speeches so often sprinkle on officials, staff, supporters and workers before thanking the man he had been criticising.

“I do want to thank, in particular, the Prime Minister Chris Hipkins for his services to the National Party, because he rode in very triumphantly in February, and he announced that he was sweeping away everything that Jacinda Ardern stood for-especially kindness. But I have to say it turned out it was all words and no action, because, as we expected, he just carried on doing more of the same: Excessive, addicted government spending.

He turned to the slew of Labour personnel problems of the past year and more, likening the government to a car with the wheels falling off; the Greens were “in this rally too, they’re on their e-bikes, and they’re pedalling along the Wellington cycle lanes,” while Te Pāti Māori were “in their waka, but, sadly, they’re not the party of collaboration that they once were”.

“Then there are the ACT folk. They’re off in their pink van, and it’s been wonderful. They’re travelling the countryside, and David’s reading Mandela’s Long Walk to Freedom, which is a good read, as you well know, Mr Speaker.”

He lavished praise on his own team, singling out deputy Nicola Willis, then closed by promising National was “ready to govern, we are sorted, we are united, we have the talent, we have the energy, we have the ideas, we have the diversity to take this country forward”.

David Seymour (ACT):

ACT’s leader also honed in on his political opponents, targeting Labour’s polling.

“It’s been a long three years in this Chamber and it has been characterised by one fact that lays bare what has happened, and that is the fact that the Labour Party, in Roy Morgan, polled 26 percent. That means that half the people who voted for Labour at the last election have abandoned voting for Labour in three years. The question that they must be asking themselves is why that is.”

“I think the reason that we have so much change and support-Labour have lost half of their supporters in the last three years because, frankly, never has so much been promised to so many and yet so little actually delivered … New Zealanders overwhelmingly say this country is going in the wrong direction, and they also will tell you that their number one concern is the cost of living. That is Grant Robertson’s epitaph.”

He targeted housing, debt, inflation, victimisation, and child poverty before targeting the government for taking “a divisive approach to almost every single issue”.

“If you take the example of vaccination. Now, I’m a person who says that vaccination was safe and effective, yet by using ostracism as a tool to try and increase vaccination levels this government has eroded social cohesion and divided New Zealanders when they didn’t need to,” he said.

“New Zealand have had enough of that style of politics. They’ve had enough of Chris Hipkins going negative. They’ve had enough of the misinformation.”

He finished by saying the choice for New Zealanders now was not between swapping “Chris for Chris and red for blue”, but “we’ll actually deliver what we promise, we’ll cut waste, we’ll end racial division, and we’ll get the politics out of the classroom. Those aren’t just policies, those are values that we all share.”

James Shaw (Greens):

The Green co-leader took his own opening shot at Seymour, as “the leader of ‘New New Zealand First'”.

“Mr Seymour must be feeling quite grumpy right now, because last term he worked so hard to get rid of Winston Peters so that this term he could become Winston Peters, and now Winston Peters is calling and he wants his Horcrux back because that blackened shard of a soul can only animate the body of one populist authoritarian at once.”

He turned the hose on both major parties in one statement, saying it was odd National was proposing more new taxes than Labour while the Greens were promising bigger tax cuts than National. He criticised National over its plan to spend the funds from the Emissions Trading Scheme, before turning to climate change overall as — unusually — a source of positivity.

“Our greenhouse gas emissions in Aotearoa are falling, and that is because — and it is only because — with the Green Party in government with Labour, we have prioritised that work every single day.”

But positivity did not last long.

“Under the last National government, one in 100 new cars sold in this country was an electric vehicle. Last June, it was one in two … and National want to cancel all of that so that they can have an election year bribe.”

Rawiri Waititi (Te Pāti Māori):

The Pāti Māori leader Rawiri Waititi began with a fairy tale.

“It seems like this side of the House can find a grain of salt in a sugar factory. I just wanted to say, as I heard the story about Goldilocks — Mama Bear, Papa Bear, Baby Bear — I tell you, it’s been very difficult to sit next to a polar bear and a gummy bear, and it’s been quite hard to contain the grizzly bear in me.”

He spoke in te reo Māori before giving a speech which — unlike the other leaders — focused exclusively on his own party’s promises.

“We are the only movement that will fight for our people,” he said.

“What does an Aotearoa hou look like? It looks like how we would treat you on the marae. We will welcome you. We will feed you. We will house you. We will protect you. We will educate you. We will care you. We will love you.”

“Te Pāti Māori is a movement that leaves no one behind, whether you are tangata whenua or a tangata Tiriti, tangata hauā, takatāpui, wāhine, tāne, rangatahi, mokopuna — you are whānau.”

He spoke of the need to reduce poverty and homelessness, before making the second of two references to his suspension from Parliament this week, then said it was time to “believe in ourselves to be proud, to be magic, and to believe in your mana”.

“I am proud of you all, I am proud of our movement, and I’m proud to head into this campaign, doing what we said we would do.”

This article is republished under a community partnership agreement with RNZ.

Papua New Guinea’s Prime Minister James Marape told Prime Minister Narendra Modi that the Pacific Islands nations consider the Indian premier as the leader of the Global South and will rally behind India’s leadership at international forums.

Highlighting the problems faced by Pacific Islands nations due to the Russia-Ukraine war, Marape pledged the support while addressing the third India-Pacific Islands Cooperation (FIPIC) Summit which was co-chaired by Prime Minister Modi.

“We are victims of global powerplay . . . You [PM Modi] are the leader of Global South. We will rally behind your [India] leadership at global forums,” said Marape.

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He pointed to the inflationary pressure on his country due to the Russia-Ukraine conflict.

Marape said that Pacific Islands nations had to face the brunt of the war as they had high costs of fuel and power tariffs and suffered as a result of big nations at play in terms of geopolitics and power struggles.

“The issue of Ukraine war with Russia, or Russia’s war with Ukraine rather, we import the inflation to our own small economies,” said Marape.

“These nations sitting before you, Prime Minister [PM Modi], have high costs of fuel and power tariffs in their own countries and we suffer as a result of big nations at play in terms of geopolitics and the power struggles out there,” said Marape.

‘You are the voice’
He urged Modi to be an active voice for the small island nations at global forums such as G20 and G7, adding, “You are the voice that can offer our issues at the highest [level] as advanced economies discuss matters relating to economy, commerce, trade and geopolitics.”

Marape prompted India to use the FIPIC summit to be the strong voice and advocate the challenges of the region.

“We ask you, using this moment where I am co-chairing and I speak for my small brother and sister nations of the Pacific. While our land may be small and the number may be small, our area and space in the Pacific are big.

“The world uses [us] for trade, commerce and movement.”

Marape urged Modi to be an advocate for Pacific Island nations, adding, “We want you to be an advocate for us. As you sit in those meetings and continue to fight for the rights of small emerging nations and emerging economies.

“Our leaders will have a moment to speak to you. I want you, Prime Minister, for you to spend time hearing them.

“And hopefully, at the end of these dialogues, may India and the Pacific’s relationship is entrenched and strengthened,” said Marape.

“But more importantly, the issues that are facing the Pacific island nations, especially the smaller ones among us ahead in its right context and given support by you, the leader of the Global South,” the Papua New Guinea leader said.

Shared history
Marape also highlighted the shared history of India and Papua New Guinea.

He said: “People have been travelling for thousands of years. Just like your people have lived in India for thousands of years. We all come from a shared history.

“A history of being colonised. History that holds the nations of Global South together. I thank you (PM Modi) for assuring me in the bilateral meeting that as you host G20 this year you will advocate on issues that relate to the Global South.”

He said that Global South had development challenges and raised concern over the use of its resources while its people are kept aloof from sharing its fruits.

“In the Global South, we have development challenges. Our resources are harvested by tones and volumes. And our people have been left behind,” said Marape.

Prime Minister Modi highlighted India’s assistance to Pacific Island nations during the covid-19 pandemic.

“The impact of the covid pandemic [impacted] most on the countries of the Global South. Challenges related to climate change, natural disasters, hunger, poverty and health were already there, now new problems are arising . . . I am happy that India stood by its friendly Pacific Island countries in times of difficulty,” said Modi.

Supply chain disruption
He also talked about disruption in the supply chain, saying that countries of the Global South had been impacted by the global crisis and also called for UN reforms at the Pacific meet.

“Today we are seeing disruption in the supply chain of fuel, food, fertiliser and pharma. Those whom we trusted, didn’t stand with us when needed,” said Modi.

Modi added that India would put aspirations of the Global South to the world via its G20 presidency, adding, “This was my focus at the G7 Outreach summit.”

This article was first published by Asian News International/Pacnews. Republished with permission.

Tuesday, February 7, at 2pm. That’s when New Zealand’s new Prime Minister Chris Hipkins’ parliamentary year begins and he faces National leader Christopher Luxon in the debating chamber for the first question time of 2023.

He needs to “Win the House”, as the saying goes. That means getting the better of the other side, and Hipkins has to show his caucus that he is up to it.

Hipkins is a vastly experienced parliamentarian, but there is nothing like being in the hot seat directly facing the leader of the opposition.

• READ MORE: Other NZ politics reports

He can be expected to take it to Luxon and ACT leader David Seymour more aggressively than Jacinda Ardern did, he is more of a “take no prisoners” politician than she was and he needs to get some hits in early on.

Hipkins has had a great start with two opinion polls showing Labour has regained the ground it lost to National.

The 1News Kantar poll showed Labour up five points to 38 percent and National down one point to 37 percent.

Newshub’s Reid Research poll had Labour up 5.7 points to 38 percent and National down 4.1 points to 36.6 percent.

Hipkins slightly ahead
In the preferred prime minister stakes, Hipkins was slightly ahead of Luxon in both polls.

Stuff‘s political editor Luke Malpass said the polls showed what no Labour figures dared to consider a fortnight ago — that the party might have better prospects under a leader other than Jacinda Ardern.

“Hipkins, it now appears, could be that person,” he said.

“In other words, by the time Ardern left she might have been a drag on the party vote.”

Luxon dismissed the poll results, saying nothing had changed.

“It’s the same government, and a new leader who can’t deliver,” he said. “It’s going to be an incredibly tight race.”

The poll details, and what the results would mean in terms of seats if an election was held now, are on RNZ’s website.

Labour’s new champion
After settling in to his debating chamber role as Labour’s new champion, Hipkins has to get his next big agenda item off the blocks — ditching policies and programmes that are in the way of his pledge to totally focus on “bread and butter” issues that affect people, which means the cost of living.

This process was started by Ardern at the end of last year and Hipkins needs to get it done and dusted because there’s sure to be the usual cries of “U-turn, U-turn”.

Although Ardern and Hipkins have explained it as necessary to the new focus on dealing with inflation and the cost of living crisis, there Is also an obvious political need in election year.

Labour wants to get rid of liabilities, policies and programmes that are causing trouble and are easy targets for the opposition.

Hipkins needs what MPs call clear air to explain and implement policies Labour hopes will reset the party’s direction, entrench the lead over National and ACT, and deliver a platform for the election campaign.

The new prime minister may be in his honeymoon period but the media knows he has to deliver.

“He will have to show there is more on the tin than just a new sticker, and in pretty short order,” said Malpass.

“It won’t be enough to just chuck the odd media merger and dank old bits of legislation over the side: It will have to be replaced by some actions on the ‘bread and butter’ issues Chris Hipkins says he is concerned about.”

Plagued by troubles
The New Zealand Herald’s political editor Claire Trevett said Hipkins’ job was to convince voters that Labour was focused “on the various troubles plaguing them now — from potholes to hip ops to the price of bread”.

“The talk is one thing, the delivery is another. Hipkins has no real option but to deliver.”

There’s been speculation about which policies and programmes will get the chop or be put on the slow track, and Stuff published a list with the top three being the RNZ/TVNZ merger, the Income Insurance Scheme (which National calls a jobs tax) and Auckland Light Rail.

It said other lesser known projects could join the list.

Hipkins must also deal with Three Waters, which has given the government more problems than anything else.

That’s more difficult because the legislation has been passed, but Hipkins has acknowledged he has to do something about it.

“We are going to look closely at the Three Waters programme,” he told Trevett in an interview. “There’s no question there has to be change. I don’t think we can just sit back and say ‘this is not our problem, this is a council problem’.

“I don’t think that would be responsible. But we also need to bring people along with us and what we are doing.”

Policy clear-out
When it comes to the policy clear-out, Hipkins has much more freedom than Ardern would have had.

She would have faced ferocious opposition attacks for dumping policies she had supported, her words would have been thrown back at her.

But Hipkins is a new prime minister, doing things his way, just as Ardern told him when she said “you must do you”. She was giving him free rein to do it his way.

Did she know Labour was heading in the wrong direction under her leadership, and that it wouldn’t win the next election unless there was drastic change?

One commentator who thinks so is Matthew Hooton.

Writing in the Herald, Hooton said Ardern so badly wanted her government to win a third term that she was prepared to step down.

“Labour’s masterful transition was carefully planned before Christmas by Ardern and her closest allies, Grant Robertson and Chris Hipkins, and flawlessly executed,” he said.

Capturing the initiative
“Political strategists spend every December working out how to capture the initiative in January, especially in election year. None has ever succeeded like Labour over the last week.”

Luxon hasn’t had a good run-up to the new parliamentary year.

Inevitably, he’s been eclipsed by Hipkins simply because he is the new prime minister but when Luxon has been able to get into the media he might have wished he hadn’t.

“National strategists seem dumbstruck,” Hooton said in his article. “Christopher Luxon was more incoherent than usual trying to explain where he stands on co-governance, the Māori seats, and whether women politicians receive worse abuse than males, pleasing neither the liberal nor conservative wings of his party.”

Stuff’s Andrea Vance said Luxon had actually helped ease Hipkins into the job “by being more mediocre than usual”.

“Somehow Luxon — whose one job last week was to stay on message — managed to drive down a co-governance cul-de-sac at`Rātana, and then spend the rest of the week doing bunny-hop u-turns to get out of it,” she said.

“And how did he manage to piss off women, again? The correct answer was ‘yes’, Christopher. Female politicians patently face more abuse than men.”

Abuse of women
She was referring to Luxon responding to a question about whether women politicians suffered more abuse than men by saying he wasn’t sure.

When Hipkins takes his seat in Parliament on Tuesday he’ll have his revamped front bench alongside him.

The cabinet reshuffle, as RNZ reported, means some of the government’s most contentious portfolios will have a fresh face.

One of the most interesting facets was Hipkins’ decision to appoint Michael Wood as Minister for Auckland.

Hipkins explained the need to “get Auckland pumping” after a difficult couple of years, but there’s a political imperative behind it as well which the Herald’s Trevett saw.

“It is aimed as a pre-emptive counter to the inevitable attacks from Auckland-based opposition leaders such as Christopher Luxon and David Seymour that the Wellington-based Hipkins is a beltway creation and out of touch with Auckland’s concerns,” she said.

“It sends a signal that Hipkins has his eye on Auckland and knows its importance.”

Peter Wilson is a life member of Parliament’s press gallery, 22 years as NZPA’s political editor and seven as parliamentary bureau chief for NZ Newswire. This article is republished under a community partnership agreement with RNZ.

Prime Minister Chris Hipkins has put the “bread and butter” issue of inflation at the top of his government’s agenda for Aotearoa New Zealand, saying today’s figures confirm that is the right approach.

Opposition leader Christopher Luxon continues to cast the government as having done nothing about the cost of living, but Hipkins argues the government’s actions are making a difference.

Annual inflation numbers for the quarter out from Stats NZ today were unchanged at 7.2 percent, roughly in line with expectations.

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There are signs inflation may have peaked, and some supermarkets are expecting drops in fruit and vegetable prices in coming weeks, but rate rises and recession are still expected.

Economists say there is unlikely to be much respite from rising costs this year.

Speaking in his first media briefing as prime minister after chairing Cabinet, Hipkins said the work on reprioritising policy to tackle the issue had “started in earnest”.

“We will be reining in some of our plans, putting them on a slower track, giving us more room to move and greater capacity to focus on the immediate priority issues facing New Zealand, particularly the cost-of-living pressures that have been caused by the global economic situation.”

Not unusual
He said the inflation numbers from today were not unusual in comparison to other global economies — but the government would continue to work to reduce it.

“Our overall rate of inflation: 7.2 percent here in New Zealand, 7.8 percent in Australia, 10.5 percent in the United Kingdom, the OECD average is 10.3 percent, the European Union is 11.1 percent,” he said.

“The Treasury is forecasting real government consumption will fall by about 8.2 percent over the next couple of years which they say indicates that fiscal policy is supporting monetary policy in dampening inflationary pressures — but there’s more to do and the fight must and will continue.

“New Zealand is not immune to those international pressures and they will continue to have an impact on our rate of inflation.”

Luxon was earlier visiting a budgeting service in Papakura, Auckland, and led his comments to reporters afterwards with a familiar litany of criticism, saying those using the service were the same people using foodbanks up and down the country.

“Again a third quarter of inflation sitting at 7.2 percent or thereabouts. It just speaks to a government that is causing huge pain and suffering for people because it has no plan and it’s not tackling the underlying issues of inflation,” he said.

“That then leads to higher levels of interest rates. Higher levels of interest rates ultimately then lead us through to a recession and a recession then leads us into unemployment. I see a government that has had no plan to tackle the underlying causes of inflation, and nothing they have done over the last nine months has made a single difference here.”

He was not buying Hipkins’ language about reprioritisation and renewed focus on the economy.

‘It’s just words’
“He can say whatever he wants, it’s just words. The reality is this is a government with Grant Robertson as a Finance Minister over the whole period of this government.

“Nothing’s changed, so the reality is he can say whatever he wants but I find it incredibly cynical that here we are six months, seven months out from an election and all of a sudden we’re miraculously gonna focus on the economy. Give me a break.”

Luxon listed National’s “five-point inflation-fighting plan” as their own solution to the problem:

• Not adding costs to businesses which will be passed on to consumers through higher prices
• Open up immigration settings to grow the productive economy
• Control government spending “incredibly well and tightly as we expect people to do in their household budgets”
• Inflation-adjusted tax thresholds
• Refocus the Reserve Bank solely on inflation

Hipkins argued the government had been doing its part to address the underlying causes, including at the petrol pump and the supermarket, and it was having an impact.

He listed fuel tax cuts, and changes to benefit rates as examples where the government had stepped in, and said while it was too early to see the results of changes to immigration from a month ago, he had heard positive feedback from businesses.

More changes
He said the government would not stop there and would continue to make changes — and May’s budget was not set in stone.

“There is an opportunity for us to make sure that the Budget reflects the priorities that I’ve set out,” he said, while drawing a line between carrying out the policy promises of this term of government — and campaigning for the next.

“In terms of our tax policy for the next election New Zealanders will know it well in advance of the election. I’m not going to announce a tax policy on day one.”

He signalled he would not forget other priorities — highlighting climate change as well as education, health and housing — but all of them were linked to cost-of-living pressures, he said.

“If you look at the inflationary figures today the cost of building a new house is one of the things that’s contributing to that.

“We’ve seen significant population growth and we haven’t built the right number of houses to keep up with that, that’s never going to turn around overnight but we’re making good progress.”

Luxon targeted the closure of the Marsden Point Oil Refinery as one area the government had not thought through the consequences of, however, with shortages of CO2 and Bitumen impacting some sectors of the economy.

Strategic assets
“There are some strategic assets that actually are important to New Zealand and actually in the context of more global uncertainty you want to make sure you’ve got resilience and you’ve got the backup to the backup to the backup.

“I’m used to running risk management scenarios . . . I get it, we want to move out of fossil fuels, but actually at the moment we’ve knocked off our gas sector and now we’re importing what, three times as much Indonesian coal as any year in a National government?”

“The ambition’s easy to state but actually if you don’t think through the detail of it you end up with these consequences that cause us a different set of problems.”

Hipkins certainly has a big job ahead of him in wrangling an inflation juggernaut powered in large part by similar rises in costs overseas.

While he refused to make any commitments on his first day in the job, he was confident New Zealand would soon see the effects.

“New Zealanders will certainly see over the coming weeks and months the evidence of the fact that we’ve made it our number one priority.”

This article is republished under a community partnership agreement with RNZ.

Incoming Prime Minister Chris Hipkins of Aotearoa New Zealand has signalled tackling the “inflation pandemic” will be a top priority for his cabinet’s slimmed-down work programme.

Hipkins and new Deputy Prime Minister Carmel Sepuloni — the first with a Pasifika heritage — will take the reins on Wednesday, following Jacinda Ardern’s sudden announcement last week she was quitting after a challenging five years in the top role.

It was perhaps the cleanest transfer of power in the Labour Party’s recent history, and a far cry from the post-Helen Clark, pre-Ardern years of infighting and headline-grabbing leadership tussles.

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“Jacinda Ardern and I are both absolutely committed to providing strong and stable leadership to New Zealand,” Hipkins told RNZ’s Morning Report today.

“I think that’s what they’ve seen from the Labour government over the past five-and-a-half years, and that’s what they’re going to continue to see.”

While in 2020 Ardern led the party to the most comprehensive victory of any in the MMP era and still leads polls for the most-preferred prime minister, those same polls suggest Labour is on track to lose the election later this year.

With polls also showing the cost of living and inflation are far more important to voters than the likes of Three Waters reform and merging state-owned media entities, Hipkins said it was time to “run the ruler” over the government’s work programme.

Need to focus
“We need to focus in on some of those bread-and-butter issues that New Zealanders are certainly focused on at the moment, including issues like the cost of living, the effects of the ongoing global inflation pandemic that we’re experiencing at the moment.

“We just have to make sure that we’re putting our resources into the things that are going to make the biggest difference and that are the most important.”

Asked if tackling inflation could come in the form of “tax relief” or toning down the Labour government’s rapid increases to the minimum wage, Hipkins said he would not make up policy “on the fly”, but would be careful to make “sure that the policy settings that the government has aren’t going to make the inflationary problem worse”.

But he hinted those on the lowest incomes wouldn’t be a target for reining in inflation, which — as he noted with the phrase “inflation pandemic” — is a global problem.

“People on the lowest incomes often feel the pinch from higher inflation more than most because they don’t have a lot of extra disposable income to meet those additional costs.”

As for public servants, many he said were in pay discussions at present so he could not comment.

Another global issue New Zealand has not been immune to is the worker shortage. Hipkins said he would not “simply rely on immigration as being the only answer” to that particular problem.

“They want more skilled workers, but they also want to know that their sons and daughters, and their classmates and so on, are also going to find productive, gainful employment… I don’t think it’s and either-or…

“We’ve got thousands of young New Zealanders at the moment who aren’t doing anything. We’re going to have to have a bigger focus on making sure we activate that potential labour force, which at the moment isn’t there.”

‘Take a breath’
Asked if the Ardern-led government had moved too fast on social issues, Hipkins said while “worthy and valuable, we can’t always progress them all at the same time” and it was time to “take a breath”.

But he would not say which programmes might be scaled back or scrapped, having yet to meet with his new Cabinet.

Opponents of the Three Waters reforms however are likely to be disappointed – Hipkins saying that will still go ahead.

“Some of the rates increases people could see without further reform in this are could be … thousands of dollars a year extra on their rates if we don’t do something to address this issue. I’m not going to walk away from that.

“But I will run the ruler over what we’re currently proposing to make sure that we’re focused in on the right issues.”

A few articles published over the weekend suggested Hipkins’ political views were to the right of Ardern. On having that put to him, Hipkins said labels like that “don’t mean a lot”.

“I’m a Labour politician. I believe in the role of government to support New Zealanders, to make sure that they have opportunity . . .

“I absolutely believe in the values the Labour Party was founded on, which is that we are here for people who are working hard to get ahead and create a better life for themselves and their families.”

This article is republished under a community partnership agreement with RNZ. 

Unions in New Caledonia have secured a 4.2 percent increase of the lowest salaries from January 1, 2023.

The concession by the employers’ organisation MEDEF was announced as a large crowd rallied for a general strike outside its offices in Noumea.

According to police, 1500 people had gathered to press their demands while the unions said they mobilised 5000 members.

The unions had sought an across-the-board pay increase of six percent in the private sector to offset the impact of inflation, which in November was 4.4 percent.

The wage hike applies to those earning between the monthly US$1440 minimum pay and those earning up to US$1775.

MEDEF said inflation has hit businesses hard as production costs are rising faster than product prices, in particular with the rise in the cost of energy.

MEDEF said the social partners became aware early on of the negative impact of imported inflation on the purchasing power of New Caledonians.

It said that as early as May it and the unions unanimously and jointly asked the government to hold a conference on wages.

MEDEF said since April there had been proposals for tax reform which combined economic recovery and resetting of net wages.

It said raising wages had therefore always been a key aspect of the planned tax reform.

The government plans to hold a conference next week to discuss reforms in view of the crisis facing public finances.

This article is republished under a community partnership agreement with RNZ.