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OPINIONPoliticsMarch 24, 2025

Going backwards for growth

A stylised image featuring the distinctive rounded architecture of the Beehive and the classical columns of the Parliament House in Wellington, New Zealand. The scene is overlaid with blue and pink tones, and silhouettes of walking people are visible above.
Image: Getty Images; design The Spinoff

The proposal to remove the living wage requirement from public sector procurement rules turns back the clock on a progressive step towards valuing essential workers, argues Lyndy McIntyre.

On April 1, workers on the minimum wage will get their annual pay rise, with their hourly rate moving from $23.15 to $23.50. That’s a 1.5% increase, 35 cents an hour. What does 35 cents buy in a cost of living crisis? Try a fifth of a litre of milk from Pak’nSave or a quarter of a loaf of the cheapest sliced bread. 

The New Zealand living wage will be updated on the same day. The current living wage is $27.80 – $4.65 more than the current minimum. The living wage rate will increase by the average movement in wages. 

While the minimum wage is a poverty rate, the living wage is a modest but decent rate, enabling workers and their families to live in dignity and participate in society. For our lowest-paid workers, this is life changing. 

One of these workers, Mele Peaua, arrived in Aotearoa around 40 years ago. The 17-year-old came from Tonga looking for a better life, “like a dream”.  But the reality of low pay and high living costs forced Mele to work three jobs: sewing during the day, working in an old people’s home at night and cleaning at weekends. 

Over the years Mele kept working around the clock in minimum wage jobs. She and her husband, also a cleaner, had children. Mele says it was hard. “We didn’t have family time. I never went for school interviews with the kids. There was never enough money for sports and school trips. It’s just the limit of our life, how much we earn to survive and to feed our kids.” 

But today Mele, and others employed via contractors to clean or provide security or catering in the core public service, are paid the living wage. 

Since it was launched in 2012, a key goal of the Living Wage Movement has been to lift the wages of contracted workers. Contracting has always been a race to the bottom, where tenders are won on the basis of the lowest wage rates. The organisations that united around the goal of ending poverty pay set out to expose the injustice of low wages for workers like the parliamentary cleaners who worked all night; workers like Jaine Ikurere who, after cleaning the prime minister’s office for 20 years, was still on the minimum wage. 

‘He mea tautoko nā ngā mema atawhai. Supported by our generous members.’
Liam Rātana
— Ātea editor

The Living Wage Movement mobilised the broader community – unions, faith groups and community organisations – to secure commitments from politicians to lift the pay of the government’s contracted workforce. And that people power won, initially achieving the living wage for parliament’s own cleaners, catering workers and security guards in 2017, then for Ministry of Social Development security guards in 2020, and over time for more groups of contracted workers in the public sector. 

In the last term of government, procurement rules for the core public sector were changed to reflect what was increasingly the norm, by including the requirement that the living wage be paid to contracted cleaners, security and catering workers.

Now the government wants to change these rules and take the living wage away from workers like Mele. Wearing her “growth” hat, Nicola Willis has proposed an “economic benefit test” that would “require government agencies to consider the wider benefit to New Zealand of awarding contracts to New Zealand firms when making procurement decisions”. The living wage requirement has been removed from the proposed rules. “This is part of the plan to increase jobs and incomes by shifting New Zealand to a faster growth track,” said Willis when announcing the proposal. 

But this change would not increase jobs. It would take workers’ wages backwards. It’s a cynical move to push the cost of doing business onto our lowest-paid workers, and turn back the clock on a progressive step towards valuing essential workers, who work hard for New Zealanders every day. And it comes at a time when nearly $15 billion for tax cuts has favoured the few, including a $2.9 billion tax break for landlords, when food banks are forced to turn people away, homelessness is rising, and rents are sky high. This attack on the working poor will drive more New Zealanders into poverty. 

E tū national secretary Rachel Mackintosh described the move as “disgusting and abhorrent”, saying: “If you’re on less than the living wage, people are having to trade off between food, power, petrol and rent. You cannot meet all those expenses if you’re not on a living wage.”

The fight’s on to save the living wage for contracted workers in the public service. Submissions to the Ministry of Business, Innovation and Employment are open and we can let MBIE know this is not fair, it’s not right. That it’s mean-minded and must be stopped. That New Zealanders want our government to set an example, to lead the way for other employers; that we don’t want contracting to be a race to the bottom, but a fair way to employ the invisible workforce of cleaners like Mele. That we want to keep the living wage in government’s procurement rules. That you can’t go backwards for growth. 

Labour’s local government spokesperson Tangi Utikere has his sights set on cutting the flack councils cop from central government.
Labour’s local government spokesperson Tangi Utikere has his sights set on cutting the flack councils cop from central government.

PoliticsMarch 24, 2025

Labour’s rising star Tangi Utikere on being a Pasifika politician from Palmy

Labour’s local government spokesperson Tangi Utikere has his sights set on cutting the flack councils cop from central government.
Labour’s local government spokesperson Tangi Utikere has his sights set on cutting the flack councils cop from central government.

The Labour Party’s Tangi Utikere is Palmerston North’s biggest champion and an MP on the come-up.

There’s an ancient adage familiar to Palmerstonians (as in, people from Palmerston North), uttered by a British explorer after a voyage through the land of the long white cloud: “if you wish to kill yourself but lack the courage to, I think a visit to Palmerston North will do the trick”.

Those immortal words were spoken by Monty Python comedian John Cleese, and they continue to haunt the city to this day, mostly in the form of a landfill bearing Cleese’s name. If you’re a Palmy native, you’d see it as just another slight on an already misunderstood place (or “suicide capital of New Zealand”, as Cleese described it). If you’re the local MP Tangi Utikere, it’s the perfect benchmark to prove the community is only on the up and up.

“You know, there was a famous quote about Palmerston North…,” Utikere laughs in conversation with The Spinoff. Sure, the city chucked up a sign around the rubbish dump to commemorate the moment, but it doth not make the city. “This is a fantastic community that has everything that anybody ever needs,” he says. “Once you visit this place, you know how special it is”.

Palmy born and bred Utikere, whose whakapapa extends to the Cook Islands, is the Labour Party’s new rising star. He’s the only MP who managed to make a significant leap forward in Chris Hipkins’ shadow cabinet in a reshuffle in early March, jumping from 19 to 12 on the party list and picking up two shiny new portfolios – local government and small business – along the way. 

A member of the Labour class of 2020, Utikere has made a name for himself as a sharp question time stickler in his role as transport spokesperson and a man who can hold his own through general debates, the makings of a potential frontbencher.

His taste for politics was passed down by his great uncle Tai, who was “heavily involved” in the Labour Party and who introduced a teenaged Utikere to his first public meeting. “He picked me up every Monday night, and we would go to our local Labour electorate committee meetings,” Utikere says. “As someone who came to this country with no formal qualifications – same with my grandparents, same with my parents – there was only one option [in politics], and they gladly supported the Labour Party.”

It was 1995, and Palmy locals Steve Maharey and Jill White were building hype for their Labour campaign in the coming year’s election, which would see Maharey retain his role as Palmerston North MP while the party would lose on the whole. In 1997, Utikere  became White’s youth MP, and in 1999, Maharey’s re-election was the first Labour campaign Utikere worked on, aged 19.

Utikere in his local electorate and home town, Palmerston North. (Supplied)

While Labour lost a number of reliably red seats in the 2023 election – Wellington Central, New Lynn and Mt Roskill, to name a few – Utikere was able to retain Palmerston North for the party. He first became the local MP in 2020, and though the 2023 election saw a tighter race between the Labour candidate and National’s Ankit Bansal (3,087 votes apart, much smaller than the 12,508 margin in 2020), the electorate has remained a Labour stronghold since 1978.

Being heavily involved with the community certainly helps. Utikere was Palmerston North District Council’s first ever Pasifika member when he was elected in 2010, and was the first person of non-European descent to be elected deputy mayor. Yeah, it says a lot about Palmy, but Utikere promises the city is also home to an “extremely diverse” community encompassing around 130 ethnicities and 220 languages.

While they’re “certainly not a South Auckland in terms of numbers”, Palmy’s Pasifika community is still a stronghold, Utikere says. “When I was on the council, it was a real focus of mine to ensure that there was resource and funding [for the Pasifika community],” Utikere says. There’s now a Pasifika Community Trust, and the council agreed in late 2023 to invest in a community hub over the next two to three years, which will cater to the city’s growing Polynesian population. “We’ve come a long way, and I’m pretty proud of our achievements in that space.”

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These days, Utikere’s time is split between parliament, which begs for his presence in Wellington for the 82-or so sitting days every year, and Palmy, where days are focused on talks with constituents and appearances across the city. There’s the trips to schools, where the teachers still remember the child version of Utikere, who used to swim in the pool and make soup to sell at the school canteen for 50 cents.

“Connections that you have [are what] I absolutely love being the local member for,” he says. “I was born here, I’ve lived here all my life. Not much goes on here without people knowing about it.”

It also helps to genuinely care for your city, and in Utikere’s eyes, there’s a lot to love about Palmy, like a stroll along the Manawatū River or a trip to Café Jacko, where the servers behind the counter know his order (“coconut chai, and you can’t go past mince on toast”). It’s nice to walk down the street, and see “these really fond memories of this community” on just about every corner.

And then there’s the time you still need to carve out for family – such as Utikere’s partner of 20 years Te Rei, an accountant whom he meet-cuted in a supermarket, and his three siblings (he’s the oldest, of course) who are still dotted around Palmy. “It’s quite nice to have someone who can choose what he wants to involve himself in,” Utikere says of his partner. “This is my job, but it’s not our life.”

For now, it’s back to parliament, where Utikere will inevitably exchange a war of words with transport minister Chris Bishop and local government minister Simon Watts in question time, and also buckle down to hunt for a youth MP who may, as he eventually did with White, follow his footsteps all the way to a spot behind a bench in the House of Representatives.

It’s an opportunity for a young person to be mentored and learn about Aotearoa’s democracy up close, but it’s also offered Utikere a chance to hear about issues in the city and across the country which affect a demography typically uninterested in local government: rangatahi. “Some [young people] are really concerned about the lack of engagement they have with their community … [and] having decision-makers that are prepared to listen to what they have to say,” Utikere says.

Bridging the gap between councils and their younger communities is a matter Utikere hopes to address as Labour’s new local government spokesperson, as well as a few other issues. Such as the government’s hard line on councils “getting back to basics” and ditching the “nice-to-haves” in the last year, whereas Utikere says that in his experience, it’s more about striking a balance.

Just as important as ensuring a city can function properly with its working basics – water, roads and infrastructure, for example – is creating a city that has a “vibrant [community] with whole heart”. So-called basics and nice-to-haves are “equally important” for communities to grow and thrive, Utikere says.

It’s repairing these relationships between local and central government, and giving more autonomy to the former, that Utikere is looking forward to in his new role which, if recent polls are anything to go by, might see him one day become the minister for local government. “For me, it’s about partnership, and making sure decisions are taken at a local level,” Utikere says. “I don’t think it’s right that local government just constantly seems to be landed with mandate after mandate, and they’re expected by central government to pick up the tab for all of that.

“What councils need is to be working alongside the government, instead of being told what to do,” Utikere says. “That’s going to be a real focus for me.”