Labour leader Chris Hipkins has launched into the election year with a promise to put affordability “at the heart of all decisions”, in his State of the Nation address in Auckland.
Delivering the annual speech to the Auckland Business Chamber, a forum often used by party leaders to set out their focus for the year ahead, Hipkins outlined Labour’s economic agenda.
“This year, this conversation comes at a moment when the stakes have never been higher,” he said.
“When the choices we make will determine whether New Zealand puts the future back in our own hands or continues to fall behind.”
With the election year well underway and Labour seeking to reposition itself after its 2023 defeat, Hipkins framed the speech as a reset focused tightly on cost-of-living pressures and economic direction.
Hipkins focused heavily on rising household and business costs, arguing New Zealanders are working harder but not getting ahead.
“People are working harder than ever and falling further behind. Groceries cost more. Power costs more. Insurance costs more.”
“New Zealanders were promised the cost of living would be fixed. Two years later, it’s worse,” he said.
Energy policy was one of the central features of the speech, with Hipkins criticising the Government’s proposed gas import terminal and linking energy prices to broader affordability concerns.
“Energy costs have gone up 18 percent in two years. Households are paying more. Businesses are paying more. And the market is not working.”
“So let me be very clear about this: We don’t support it. We won’t support it. And if we’re in government before a deal is done, we won’t go through with it.”
Instead, he argued New Zealand should invest more in renewables.
“New Zealand should be a renewable energy superpower, driving new industries, creating jobs in our regions, and cutting our emissions.”
“Climate action is action on the cost of living. It is a smart economic investment.”
He also referenced recent extreme weather events affecting communities around the country.
“What were once one-in-100-year weather events are now happening every year. And they will keep happening, and they’re going to keep getting worse, unless we act.”
A key economic plank reaffirmed in the speech was Labour’s proposal for a targeted capital gains tax on investment and commercial properties.
The policy was first announced last year and was positioned again as part of Labour’s plan to redirect capital into productive investment.
“That’s why Labour will introduce a simple, targeted capital gains tax on investment and commercial properties,” Hipkins said.
“Not on the family home. Not on Kiwisaver. Not on farms. Not on businesses.”
“But on speculative investments that drive up asset prices without creating jobs or building productive capacity.”
Labour has previously said revenue from the measure would contribute to funding cost-of-living initiatives, including three free doctor’s visits per year for every New Zealander.
“Labour will put affordability at the centre of everything we do, starting with three free doctors’ visits a year for every New Zealander.”
Hipkins went further, signalling how he would approach leadership if returned to office.
“I will put affordability at the heart of all decisions that I make as Prime Minister, and I will expect all my Ministers to do the same.”
He also reaffirmed plans for a New Zealand Future Fund aimed at backing infrastructure and innovative Kiwi businesses, arguing the country must rely less on overseas capital.
“Instead of selling assets and waiting for foreign investors, as this government is doing, we’ll use what we already own to create lasting wealth here at home.”
Beyond the speech itself, Labour has signalled a broader package of policies heading into the election, including expanding access to free cervical cancer screening, introducing a levy on overseas streaming services to support the local screen industry, and repealing the Regulatory Standards Act within its first 100 days in office.
Hipkins framed New Zealand’s economic challenge as one of opportunity rather than effort, pointing to migration figures as evidence that many feel they cannot get ahead at home.
“The problem in New Zealand isn’t effort. It’s opportunity.”
“Nearly 240,000 people have left the country in the last two years. That’s like Napier, New Plymouth, and Rotorua all packing up and leaving.”
“It’s talent we can’t afford to lose, and talent we can win back.”
Summing up Labour’s priorities, Hipkins distilled his message into three pillars.
“Jobs. Health. Homes.”
He framed it as “not a slogan, but a to-do list.”
The address, delivered to the Auckland Business Chamber, focused squarely on affordability, energy and economic reform, with no direct reference to Te Tiriti o Waitangi or Māori-specific policy.
Acknowledging Labour’s previous term in government, Hipkins said the party had “tried to do too much, too fast,” and pledged a more disciplined approach if returned to office.
“We won’t try to do everything in our first term. We’ll focus on what matters most, and we will deliver.”
Framing the election as a clear choice between competing visions, Hipkins positioned it as “a choice between two futures.” Which is also a play on Nationals’ slogan “Fixing the Basics, Building the Future.”
“One path says: ‘Do less. Wait more. Hope for the best.’ The other says: ‘Fix the cost of living. Back ourselves. Build a future made in New Zealand.’”
The speech comes at a politically significant moment for Labour.
The party was the highest-polling party in the most recent RNZ–Reid Research poll, though the governing coalition would still have the numbers to return to office.
Labour has also seen two high-profile departures from its Māori caucus. Former Speaker Adrian Rurawhe has already announced he will not seek re-election, while former Tāmaki Makaurau MP Peeni Henare has confirmed he is leaving politics and will deliver his valedictory speech on 4 March.
