{"id":401736,"date":"2026-04-28T16:02:18","date_gmt":"2026-04-28T16:02:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/401736\/"},"modified":"2026-04-28T16:02:18","modified_gmt":"2026-04-28T16:02:18","slug":"labour-says-it-did-not-mislead-ratings-agency-by-not-mentioning-health-spending-plans-nicola-willis-alleges-secret-taxes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/401736\/","title":{"rendered":"Labour says it did not mislead ratings agency by not mentioning health spending plans, Nicola Willis alleges secret taxes"},"content":{"rendered":"<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Hipkins said he \u201cabsolutely would reject any suggestion\u201d that Edmonds misled Fitch by not telling the agency about Labour\u2019s spending plans.<\/p>\n<p>Ratings agency meeting with Labour<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\"><a href=\"https:\/\/www.nzherald.co.nz\/nz\/fitch-puts-new-zealand-aa-rating-on-negative-outlook-over-rising-debt\/FCY4EYD5JRBO3GLPY47RXYKBCQ\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/nz\/fitch-puts-new-zealand-aa-rating-on-negative-outlook-over-rising-debt\/FCY4EYD5JRBO3GLPY47RXYKBCQ\/\">Fitch downgraded the outlook for the New Zealand Government in Marc<\/a>h, indicating that the Government\u2019s AA+ rating with the agency could be downgraded.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">In its report on that decision, published on March 20, Fitch indicated Labour would use taxes to reduce the deficit and debt.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">In a section headed \u201cPost-Election Deficit Reduction\u201d, Fitch said that \u201csignificant fiscal consolidation measures are likely to occur only after the 2026 election\u201d.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Fitch went on to compare the coalition Government and Labour\u2019s deficit reduction plans.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">It said the coalition was going to use \u201cexpenditure constraint\u201d \u2013 code for spending cuts \u2013 to bring the books back to surplus, while Labour would \u201cemphasise revenue measures\u201d \u2013 code for new taxes.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Labour has only announced one \u201crevenue measure\u201d, its CGT.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">In the words of Labour\u2019s policy document, \u201cevery dollar raised will be ring-fenced\u201d for spending on health, mainly a policy of giving every New Zealander three free GP visits a year, meaning there is no revenue left over to be spent on reducing the deficit.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Willis said Fitch\u2019s comments about Labour\u2019s plans were \u201cmysterious\u201d.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">\u201cBecause, so far, the only revenue measure that Labour has confirmed [the CGT], they have already spent on GP visits\u201d.<\/p>\n<p><img  alt=\"Finance Minister Nicola Willis. Photo \/ Mark Mitchell\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Finance Minister Nicola Willis. Photo \/ Mark Mitchell<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Willis cited ambiguity in the positions of <a href=\"https:\/\/www.nzherald.co.nz\/nz\/politics\/mp-deborah-russell-dodges-question-on-whether-labour-capital-gains-tax-goes-far-enough\/HECHK4J4B5DLFFQWZQA7IBSLN4\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/nz\/politics\/mp-deborah-russell-dodges-question-on-whether-labour-capital-gains-tax-goes-far-enough\/HECHK4J4B5DLFFQWZQA7IBSLN4\/\">Hipkins, Edmonds, and Revenue Spokeswoman Deborah Russel<\/a>l last week on matters of tax to suggest the party was keen on additional taxes.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">\u201cThey\u2019re telling Fitch one story to make out that they\u2019re fiscally prudent and telling New Zealanders another,\u201d Willis said.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Fitch regularly comes to New Zealand to meet with policymakers and politicians to inform its ratings assessments. It is not unusual for Fitch to meet with Labour, given the possibility it will be in power by the end of the year.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">The Herald has been asking Fitch since March 25 to clarify what was said in the meeting and whether Labour promised additional taxes or whether the party simply did not clarify that the CGT revenue was not going to be used for fiscal consolidation. Fitch has not given the Herald an answer to this question.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Edmonds met with Fitch as it was putting its report together. Hipkins was not part of that meeting.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Speaking ahead of Labour\u2019s caucus meeting on March 24, Edmonds said she discussed \u201cnew revenue measures such as a targeted capital gains tax\u201d with Fitch.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">\u201cThat\u2019s why it was featured in the report,\u201d she said. <\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">On Tuesday, the Herald asked Edmonds whether she had told Fitch the money raised from the CGT had all been ring-fenced for new spending.<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">Asked whether the fact the CGT revenue was being spent had come up, Edmonds said: \u201cI don\u2019t think that came up in the conversation.\u201d<\/p>\n<p class=\"npuzLaxKHxgCDhG\" style=\"display:none\">\u201cWe talked more generally about health and the ageing population,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"Hipkins said he \u201cabsolutely would reject any suggestion\u201d that Edmonds misled Fitch by not telling the agency about&hellip;\n","protected":false},"author":2,"featured_media":401737,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[3041,65187,3595,1288,5399,20134,18432,24851,71,13988,42,134,69063,702,6721,2845,101,5983,207204,207203,300,43,20484,5006,4762,26346,2171,29056,2081,10465,4887,312,9095,14040,8262,2373,13917,40,38,41,39,792],"class_list":["post-401736","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-agency","tag-alleges","tag-by","tag-capital","tag-debt","tag-deficit","tag-did","tag-fitch","tag-from","tag-gains","tag-headlines","tag-health","tag-insists","tag-it","tag-labour","tag-leaving","tag-left","tag-levels","tag-mentioning","tag-mislead","tag-money","tag-news","tag-nicola","tag-not","tag-party","tag-planned","tag-plans","tag-proposed","tag-raised","tag-ratings","tag-reduce","tag-says","tag-secret","tag-spend","tag-spending","tag-taxes","tag-telling","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-willis"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/401736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=401736"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/401736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/401737"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=401736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=401736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=401736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}