The Labour Party is not yet saying whether it will introduce a social insurance scheme next term.
The social insurance scheme would support workers if they lose their jobs and would be funded by a levy on wages and salaries. This is being labelled a "jobs tax" by National.
Neither Labour leader Chris Hipkins nor Labour finance spokesperson Grant Robertson would say this week if their party wants to proceed with it after the election.
Hipkins said on Friday the party's position would be revealed at a later date.
The social insurance scheme - designed by the Government, Business New Zealand and the Council of Trade Unions - was proposed to support workers with 80 percent of their income for up to seven months if they lose their job through no fault of their own. There would be an ACC-style levy of 1.39 percent on workers' wages or salaries to pay for it.
However, in February, under new Prime Minister Hipkins, it was thrown on the policy bonfire. A statement from Hipkins at the time said it would "not proceed this term".
"We will need to see a significant improvement in economic conditions before anything is advanced," he said at the time.
There was a bit of argy-bargy over the topic between Robertson and National Finance spokesperson Nicola Willis on a Business NZ conference panel on Tuesday.
Willis raised the scheme - which National says is funded by a "jobs tax" - leading Robertson to say it was "on hold until economic conditions improve".
The National MP then interrupted asking, "Will you do it next term, yes or no?"
Robertson replied: "At the moment Nicola, economic conditions are not in place where we can do it".
The Labour spokesperson then raised whether National was planning to cut the 39 percent tax rate. Willis said the party wouldn't be doing that in the first term.
Robertson said National's tax plan was "demonstrably inflationary" and "doesn't add up".
National proposes to adjust income tax rates to account for inflation, paid for by introducing a foreign buyers tax and a number of other changes to revenue streams. Labour has accused National of having "voodoo" accounting with its costings.
Labour leader Hipkins was asked about a "jobs tax" on Friday.
"We have not got now, and nor have we ever had, a plan to introduce a jobs tax," he said.
Hipkins said the social insurance scheme is "currently parked".
When a reporter said Labour hadn't ruled out introducing it during the next term of government, Hipkins said: "We will be clearer on that when we release our policy in that area before the election, which we have not yet done".
Willis released a statement saying Labour "has to come clean with Kiwis".
"Labour’s proposed jobs tax will mean every working New Zealander and every employer will be hit with a new tax of 1.39 percent every year to pay for a gold-plated welfare scheme," she said.
When Labour announced it would remove GST from fresh and frozen fruit and veges if re-elected, Robertson said the party would make no changes to income tax levels and there would be no introduction of new taxes such as a wealth tax or capital gains tax. There would, however, still be "gradual" increases to levies and duties as is normal.
Prior to the scheme being "parked", Robertson last year said crises like the Canterbury earthquakes and the COVID-19 pandemic had shown the importance of having a scheme that protects people and the economy after job losses.
"During COVID-19, the Government protected livelihoods with the Wage Subsidy Scheme and Resurgence Support Payment. This was primarily done through keeping people in their existing jobs and supporting businesses most directly affected by the pandemic," he said.
"We think it’s time for an enduring solution. Business NZ and the CTU jointly approached the government about this work, and we have progressed it through our tripartite Future of Work Forum. A range of Ministers and departments have contributed to the proposals alongside our social partners."
He said these schemes are common across the developed work.
Hipkins' decision to cancel or delay a number of programmes earlier this year was driven by him wanting to "put the cost of living front and centre of our new direction" and slim down the Government's agenda.
