National leader Christopher Luxon's suggestion to axe Labour Day to make way for the new Matariki public holiday has been described as "out of touch".
Luxon told RNZ's Morning Report on Wednesday that the new Matariki public holiday, to be held this year on June 24, will cost $450 million at a time when businesses are grappling with record inflation.
"Look, it's a great idea, but which of the other holidays are you going to cancel?" Luxon asked. "We're very supportive of Matariki; why don't you cancel Labour Day?"
Luxon said the Government needed to take responsibility for rising inflation, which is tipped to hit a 30-year high of 7 percent when it's announced on Thursday.
"How do you throw $450 million of extra cost on business at a time when you're dealing with cost of living and inflation the highest it's been in 30 years and higher than any of our trading partners?
"New Zealand is not doing a good job of managing inflation domestically at the moment because the Government is addicted to spending. It's just spend, spend, spend."
It comes as confidence in the economy is falling with more workers expecting a pay increase, according to a new survey.
Prime Minister Jacinda Ardern, speaking in Singapore, said: "I do not believe that we need to get rid of another iconic public holiday in order for New Zealand to claim as our own our first Te Ao Maori public holiday, Matariki.
"In fact, we know having just had Easter, that public holidays represent many things for New Zealanders: time to be together, but also an opportunity for New Zealanders to engage in domestic tourism and hospitality - both of which will be welcome at this particular time."
Labour's Michael Wood set aside his ministerial hat for a moment to send out a Labour Party branded press release attacking Luxon's proposal.
"Mr Luxon has shown how out of touch he is with Kiwi families who need a break between Queen's Birthday and Christmas," Wood wrote.
"First he didn't support Matariki and this morning he's confirmed National would look to cancel Labour Day if it became the Government.
"This would mean no national public holiday between Matariki in late June, all the way through to Christmas, a total of 183 days.
"Tourism, hospitality and small towns across New Zealand rely on our public holidays for increased visitors and customers. Labour Day helps them prepare for the busy summer season."
Craig Renney, director of policy at the Council of Trade Unions, also described Luxon as out of touch over his suggestion.
"New Zealanders already work longer hours than the OECD average - equivalent to 15 extra days at work each year. We already have fewer public holidays than many other OECD countries," Renney said.
"Labour Day commemorates the struggle for an eight-hour working day, won in New Zealand in 1840. It was first celebrated in 1890. It's not surprising that National wants to get rid of a long-standing public holiday that celebrates workers' rights.
"It shows how little National thinks of the daily struggles of Kiwi workers. It would also leave workers with no public holiday in the six months between June and Christmas.
"Cancelling Labour day is a petty, out of touch idea that should be abandoned."
But National is not alone. ACT has also pledged to scrap the new holiday or another public holiday in its place. ACT proposed Matariki should replace Labour Day back in September 2020.
"Introducing another holiday is just a kick in the guts for hard-working business owners struggling to keep afloat," ACT MP and small businesses spokesperson Chris Baillie said last month.
It's not the first time National has come under fire over comments on Matariki. MP Simon O'Connor questioned the name of the new holiday, marking the beginning of the new year in the Māori lunar calendar, over concerns about "respecting cultural diversity".
Finance Minister Grant Robertson said on Tuesday he did not believe Kiwis blame the Government for rising inflation.
"They can see the war in Ukraine, they've heard about the supply chain constraints. They know it themselves because they've ordered goods that aren't arriving as quickly because ships aren't coming to New Zealand as quickly."
National's finance spokesperson Nicola Willis disagreed, especially after Reserve Bank Governor Adrian Orr said on Tuesday central banks grappling with inflation need support in the form of "more targeted effective fiscal policies" or else resort to increasing interest rates.
"A credible Finance Minister would be doing all he could to rein in inflation right now," Willis told Newshub. "It's driving a cost of living crisis for all New Zealanders."
