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Labour won’t say if it’ll back India free trade deal, says it’s a ‘good step forward’
Labour will not say if it will give its backing to the government’s free trade agreement (FTA) with India, but acknowledges it seems like a “good step forward” in something the party would support.
Labour’s trade spokesperson Damien O’Connor said he was not in a position to say whether a better deal could have been achieved by waiting.
“We have to seize the opportunity.
“Getting huge volumes of dairy into the consumer market was never realistic.
“We said so in government, we were criticised for it, but we were honest that ultimately building partnerships within it will be the long term value of this agreement.”
The government confirmed the conclusion of free trade negotiations with India on Monday, with significant wins for several industries, but limited gains for dairy.
The prime minister called it a “high quality deal”, saying it was about “our relative competitiveness”, but NZ First leader Winston Peters described it as a “low-quality deal” and was withholding his support.
His party exercised the agree to disagree provision of its coalition arrangements when Cabinet approval for the deal was sought last week, and made it clear that it would vote against enabling legislation if and when it was introduced to Parliament.
NZ First leader Winston Peters described it as a “low-quality deal”. Photo: RNZ / Mark Papalii
Whether it passes or not would now be up to the opposition – but Labour said its caucus had not had a chance to discuss it yet.
O’Connor told RNZ National and Act would have to reach out to Labour in regards to securing support. He said he had received a briefing from the trade minister and he did not “request” support.
“When that comes, that’s something we’ll look at.
“We have to see all the details before making that final decision.”
He acknowledged the ball had been in Labour’s court “many times”, referring to the China, EU and UK FTAs.
“We’ve always supported growing opportunities for our exporters.
“We hope that this is genuine progress from what I’ve seen so far.”
O’Connor said the deal was a “very small step” but a “positive step forward” in a world of “trade disruption.”
He said India had shifted its position since President Trump came to power, and New Zealand was a “beneficiary” of it trying to secure trade agreements with more trading partners.
“It’s good to get it over the line, even though industries like dairy will be disappointed, no doubt.”
The deal covered a “wide range of issues” he said, but “other sectors will judge whether it’s comprehensive or not”.
“How well these opportunities are taken up will depend upon both the Indian economy and the New Zealand economy.”
Government’s response
Christopher Luxon said on Monday he was confident the government would be able to pass the legislation, despite requiring Labour’s support to do so.
“We’ve seen a lot of good bipartisan support for trade across the Parliament, and we’ll continue to build the case for that.”
Luxon rejected the notion the deal was rushed through, despite NZ First urging the coalition not to rush it, and “to use all three years of this Parliamentary cycle in order to get the best possible deal” instead.
“More time doesn’t drive a better deal. This is as good a deal as it gets, and I think we should be very, very proud of this deal.”
He said he had “tried to deal” with NZ First’s objections, and “reassured them” about the parts that were in the interests of New Zealand.
“At the end of the day, this is going to be the third biggest economy in the world. This is an economy that New Zealand needs to be in.”
He also rejected the idea securing the deal was about meeting an election promise rather than getting the best deal for New Zealanders.
Prime Minister Christopher Luxon (L) and Trade Minister Todd McClay announce the free trade agreement with India. Photo: Mark Papalii
McClay said on Monday there would be a “range of views and concerns” but this was in the best interest of New Zealand.
“It will be each party for themselves to decide their position of whether they want to support an agreement that would deliver thousands of jobs and billions of dollars worth of new exports.”
He referenced the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and said since then, there had been “consensus on trade across our Parliament, particularly with the large, major parties”.
He pointed to the process of free trade agreements, which were concluded and then signed and ratified, “but until a deal signed, actually, there is nothing to put before Parliament”.
The government would be able to rely on the support of the ACT Party, which said the announcment of the deal was a “massive moment for New Zealand”.
Trade spokesperson Dr Parmjeet Parmar said the agreement signalled that New Zealand was serious about engaging with one of its most important economic partners.
“Two-way trade between New Zealand and India already totals more than $3 billion each year. This agreement has the potential to grow this figure significantly, freeing trade and reducing barriers making it easier for businesses on both sides to sell and invest.
“This is a great opportunity for New Zealand with easier access to Indian markets meaning more certainty for exporters and more choice for consumers.”
Parmarsaid said India and New Zealand had strong links with many families, business people and professionals operating in both countries.
“This agreement will build on these connections allowing for greater pathways for collaboration in business and investment.”
rnz
The chief executive of the Parliamentary Service is confident there will be enough room to accommodate the increased number of MPs and their staff coming into Parliament.
On current numbers, up to 131 MPs could be sitting in the Chamber following the election, brought on by a record overhang result.
Clerk of the House of Representatives Dr David Wilson told the Spinoff that currently the debating chamber had enough chairs to seat 124 MPs – including the Speaker of the House – and work was being done to accommodate more by altering the seating arrangement.
In a statement, Parliamentary Service chief executive Rafael Gonzalez-Montero said planning for a larger Parliament had been going for “some time”.
“Now that the election results have confirmed an increase to the number of members we are looking at several options.
“We are confident we will be able to accommodate all members within the Chamber.”
VNP / Phil Smith
Gonzalez-Montero said office accommodation for members and their staff would be “stretched” for a short time, but the new Members’ Building was only a few months away from “practical completion”.
That building – located behind Parliament – was due to be ready to occupy in April next year and had capacity to accommodate around 30 backbench MPs.
“All members should be in fit-for-purpose accommodation from that point,” Gonzalez-Montero said.
Following the 2023 election, 123 MPs sat in the Chamber – a record number at the time. That decreased to 122 following the resignation of National MP Judith Collins.
Collins held the seat of Papakura and stepped down in May and Parliament voted against holding a by-election because it was too close to the election.
The election result also meant high-ranking National Party MPs like Chris Bishop, Paul Goldsmith, Nicola Willis and Gerry Brownlee – Speaker of the House and an MP for 30 years – would likely not make it back into Parliament.
Only resigning or retiring MPs were permitted to give a valedictory speech meaning none of them would get the chance to give a valedictory statement.
Asked if their would be special allowances for valedictories, Wilson said in a statement that normally only MPs were allowed to speak in the House but the House could suspend its own rules or temporarily alter them.
“It could do so to allow former members to address the House.”
Wilson said no such arrangements could be made until the next Parliament opened and members sworn in.
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