'It's good policy, but mine is better': Willis and Edmonds square off

Author: Thomas Coughlan,
Publish Date: Wed, 26 Aug 2026, 8:56pm

Labour's finance spokeswoman Barbara Edmonds (left) and her National counterpart Nicola Willis took part in the Politik Election Summit in Wellington. Photos / NZME

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National and Labour’s finance spokeswomen squared off in an early election debate on Wednesday, crossing swords at the Politik Election Summit in Wellington.

National’s Nicola Willis opened the debate saying the “phoney war” of the election campaign ended on Sunday with the publication of Labour’s fiscal plan.

She alleged the plan’s pledge to increase Crown revenue to 33% of GDP (National wants to lower it to 30% of GDP) lifted the veil on Labour’s plans to raise taxation far more than the party claims.

Willis claimed this worked out at about $100 extra tax every week for every New Zealand household. Labour has said it will not introduce new taxes beyond its capital gains tax, Investment Boost tax credit changes, and potentially banning interest deductions for residential landlords.

Willis prodded Labour’s finance spokeswoman Barbara Edmonds over remarks made last year about the coalition’s Investment Boost tax credit, which the latter had spoken warmly of.

Edmonds has since said Labour would scrap the tax credit, banking $5 billion in savings and putting $1.56b towards a new small business policy.

She fessed up to liking Investment Boost, but defended the decision to axe it.

National's Nicola Willis (left) and Labour's Barbara Edmonds at a summit in Wellington on Wednesday. Photo / Thomas Coughlan

“Yes, [Investment Boost’s] a good policy, but my policy is better, so that’s where we left it,” Edmonds said of the switch.

Edmonds said Labour’s plan to lift people’s living standards was based on making things cheaper somewhere else.

“Ultimately you give them another transfer – you allow them to have cheaper expenses somewhere else,” she said.

She said people in her electorate of Mana, most of which will become the Kenepuru electorate at the election, will benefit from Labour’s policy to cap public transport fares at $20 a week in Wellington.

Willis fired back, arguing that “if you want to have incomes growing faster than the prices of goods ... you have to have a faster growing economy that is able to pay them higher wages”.

National’s deputy leader claimed Labour could not fund its promises, particularly the $11b estimated cost of restoring the old pay equity regime.

“Good luck finding your $11b,” she said.

Willis defended the savings made from her cuts to the regime and said the Government’s decision to axe money for “funded sector” settlements meant large, profitable companies were not getting public cash for settlements.

“We don’t think it’s the Government’s job to fund pay equity settlements for private businesses,” Willis said.

“Your position is the taxpayer in Porirua, who can’t afford mince on toast, should pay more tax to help Ryman Healthcare with a pay equity settlement.”

Edmonds said Labour was alive to the concerns of people who knew they had only $8 in their bank account and were “sweating when you are taking your car to get a warrant of fitness”.