Pay equity changes: Two sides of the coalition brought out

7:21 am today
Nicola Willis

Finance Minister Nicola Willis says women impacted by the changes will benefit when the funding is reprioritised into frontline health and education services. Photo: RNZ / Samuel Rillstone

Analysis: The government's sudden decision to massively rewrite the pay equity regime - making it harder to lodge claims - brought out two very different sides of the coalition on Tuesday.

While ACT ministers were popping champagne corks and lauding their Workplace Relations Minister Brooke van Velden for single-handedly "saving the Budget", National Party ministers were on the defensive and contradicting soon-to-be deputy prime minister David Seymour's victorious claims.

So aware of the optics of halting pay equity claims for sectors with high rates of female workers to plug a billions of dollars-sized hole in her second Budget, Finance Minister Nicola Willis headed to the media gauntlet flanked by four female ministerial colleagues.

Judith Collins, Erica Stanford, Lousie Upston and Nicola Grigg were there for support, but did not speak, as Willis denied the move was about making her Budget add up.

Willis said the government believes in the principle of pay equity, where women are able to prove it.

"What this is about is ensuring we are clear, transparent, and fair to ensure that where those claims are made they relate to gender-based discrimination and that other issues to do with pay and working conditions are raised during the normal employment relations process."

She noted that Treasury had been forecasting increases in costs around pay equity claims, but had revised that figure down by "billions" as a result of the changes to the threshold the government is making.

Christopher Luxon

Christopher Luxon said the change had nothing to do with the Budget. Photo: RNZ / Samuel Rillstone

Willis won't be ring-fencing those savings for women impacted by the changes, but says they'll benefit from it when the funding is reprioritised into frontline health and education services.

Across the way from Willis was her boss Christopher Luxon, who got terse when it was suggested the law change was about making the government's Budget add up.

"It's got nothing to do with the Budget, this is about making sure we have a piece of legislation that is incredibly workable and not as complex as it has been."

The prime minister, who stopped doing Tuesday afternoon media conferences some months ago, had unexpectedly appeared to do damage control, knowing full well Act would be on a victory parade.

So what of the timing then?

The legislation reforms haven't been considered urgent, or even raised by Luxon or Willis in the past 18 months as being necessary.

Two weeks out from Budget Day, National ministers would have it believed the legislation has become so unworkable so quickly that it needs to be fixed under urgency in Parliament within 24 hours of the public being notified.

Brooke van Velden

Workplace Relations Minister Brooke van Velden. Photo: RNZ / Angus Dreaver

It's retrospective, meaning 33 claims currently underway will be stopped in their tracks and the new threshold will apply to any new claims from this point on.

Protesters furious at the speed the legislation was progressing, and without an opportunity for feedback or consultation, prompted hundreds to spontaneously gather on Parliament's forecourt as MPs started to make their way to Question Time.

Nurses, care workers, and many more spoke of being shocked, appalled, and devastated after being blindsided by van Velden's announcement.

Yet Willis says Cabinet ministers were comfortable with the evidence van Velden put forward, adding "we believe the minister provided a very principled case".

A principled case that didn't warrant first hearing from those who would be most directly impacted.

There's been a gaping hole in Willis' Budget that promises increases in health, education, law and order, and defence, along with a targeted cost of living relief package.

Plenty has been committed to - at least $10 billion in new defence spending for one - but with no new taxes and no specific targets for public service cuts, there has been endless speculation about how it might add up.

Killing Kiwisaver government contributions hasn't been ruled out while putting an end to winter energy payments has been.

On Tuesday a big missing piece of the puzzle was unveiled by van Velden.

The Opposition will use this as a stick to bash government ministers with, saying they don't care about women and low-income workers are the sacrificial lambs for whatever pet projects get a greenlight in the Budget to be revealed on 22 May.

Act will be praised by its supporters for finding the biggest cuts and doing the heavy-lifting on the government's path to fiscal prudencey.

It's Willis and Luxon, however, who will be judged most harshly for how the government has got there.

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