# Labour says fiscal plan covers pay deals, National sceptical

> Labour claims fiscal plan funds new pay deals; National says money already spent.
- Title: Labour says fiscal plan covers pay deals, National sceptical
- Summary: Labour claims fiscal plan funds new pay deals; National says money already spent. Labour says its fiscal plan can cover $8.5b in pay equity settlements and…
- Keywords: labour, national, fiscal plan, pay deals, fair pay agreements, new zealand, election 2026, crown employment, politics, news, fiscal, plan
- Source: NZ Herald — https://nzherald.co.nz/nz/politics/election-2026-labour-says-its-fiscal-plan-can-stretch-to-cover-cost-of-new-pay-deals-national-is-sceptical/QKK5A2XDLJH75JUXDYCC7ALHDQ
- Read time: 1 min
- Topics: labour, national, fiscal plan, pay deals, fair pay agreements, new zealand, election 2026, crown employment, politics, news
## Labour's fiscal plan
Labour says it can pay for industrial relations changes from within its fiscal plan.
## Fiscal plan funding
The plan is worth $10.3 billion over four years, with $8.5b for pay equity settlements and $1.5b for health costs.
## Remaining fiscal headroom
Leaving $300 million to cover non-health public service costs.
## Fair Pay Agreements
Labour promises legislation to bring back Fair Pay Agreements within 100 days.
## Fair Pay Agreements definition
Set industry-wide minimum employment standards like base pay rates and health and safety.
## Previous Labour attempt
Labour legislated FPAs in 2022 but repealed them when coalition government took office.
## National's stance
National says Labour's fiscal plan has already been spent and the $18 billion bill is unfunded.
## National's savings
Scraping FPAs saved taxpayers $65 million in administrative costs.
## National's concerns
Reintroducing FPAs would discourage business investment and hiring.
## Treasury concerns
FPAs could reduce productivity growth and lower long-term GDP per capita.
## OECD report
OECD says FPAs would likely reduce wage inequality but reduce productivity growth.
## Crown employment costs
Total Crown employment costs are $38.8 billion, about 8% of New Zealand's GDP.
## Labour's position
Labour says FPAs will improve workers' prospects without increasing Crown costs.
## National's warning
Reintroducing FPAs would put obstacles in the path of Kiwi businesses.
## Treasury paper
Treasury warned FPAs could increase Crown costs and reduce fiscal control.
## Health sector concerns
Health agencies warn FPAs could exceed their affordability.
## What happens next
Labour to introduce FPA legislation within 100 days; National to defend fiscal stance.
## Key takeaway

Labour says its fiscal plan can cover $8.5b in pay equity settlements and $1.5b health costs, leaving $300m for other public service costs, while National claims the $10.3b fiscal plan has been spent.