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AAP
AAP
Politics
Ben McKay

Hipkins to rein in spending in New Zealand policy reset

New Zealand Prime Minister Chris Hipkins will begin his promised "policy reset" as he reorients his Labour government towards the October election.

Mr Hipkins, who became leader last month after Jacinda Ardern's surprise exit, has pledged to shed unpopular policies and rein in spending.

Cabinet is holding a Wednesday lunchtime meeting to consider options, with the first cuts to be announced on Wednesday afternoon.

Several options are on the chopping block.

A merger of New Zealand's two primary public broadcasters - TVNZ and Radio NZ - is widely anticipated to be scrapped.

A rollback of unpopular elements of expensive water infrastructure reforms known as "Three Waters" is also expected, although the form is unclear.

Other big spending items - such as an Auckland light rail project and a social unemployment insurance scheme - have also been mooted to go.

Mr Hipkins has asked his ministers to "reprioritise" spending from Ardern-era projects deemed excessive in the wake of gloomy economic forecasts.

"We have some discussions about reprioritisations. It's the top item on the agenda," Mr Hipkins told Radio NZ on Wednesday, declining to pre-empt announcements on which policies could go.

"I don't want to get into what is and what isn't on the agenda."

Mr Hipkins said he would revisit an unpopular proposal to reduce speeds on many regional roads.

"I'm having a look a that. I've had some conversations with the minister for transport about it," he said.

There is also the thorny issue of "co-governance", a byword for power-sharing arrangements with Maori as mandated by the Treaty of Waitangi.

Co-governance is a hot political issue, with opposition parties campaigning against proposals to include Maori in government service delivery.

However, co-governance requires a more nuanced approach given it applies across many branches of government in different ways.

Mr Hipkins told Radio NZ he would also make announcements on Wednesday in response to Auckland's devastating floods.

Four people were killed and hundreds of homes were rendered uninhabitable after Auckland's wettest day on record brought widespread flooding on January 27.

New Zealanders head to the polls on October 14, with Labour seeking a third term in office.

Polls released last week showed the transition from Ms Ardern to Mr Hipkins has delivered Labour a bounce in support.

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