So, the Government has finally come to the party, but has it put enough on the table? 

Eight days ago, National Party leader Christopher Luxon said we were dealing with a cost of living crisis and thought the Government should help us all out by cutting taxes and changing tax thresholds so we have more money in our pockets. 

As we know, the Government thought long and hard about that. Or, should I say, longggggggggg and hard. 

And just over a week later, fronted up yesterday and announced that fuel taxes would be cut by 25 cents a litre for three months. 

According to Megan Woods this morning, three months is not hard and fast and maybe that’ll be extended. But, for now anyway, we’re going to be paying less tax on petrol until mid-June. 

Now if this was an NCEA assignment, I’d give the Government an “achieved” grading. Remember there are four possible grades in NCEA - not achieved, achieved, merit and excellence. 

I’d give it “achieved” because at least it’s something. But I think more could be done still to bring down the cost of living in New Zealand. 

It looks like the Opposition parties aren’t as generous as me and they’re giving the Government a “fail” grade for its petrol tax reduction. Or “not achieved” in NCEA language. 

National leader Christopher Luxon is saying that cutting petrol taxes will provide some relief but it won’t address the wider cost of living crisis. 

And I think he’s spot on, for several reasons. 

First, an obvious stumbling block in all of this is going to be the lack of control or authority the Government has over producers, manufacturers, service providers and retailers, and whether they actually pass on savings from cheaper fuel to their customers. 

Because this is not just about what you and I pay at the pump, is it? It’s about the impact cheaper fuel could have on the cost of all the things that need to be transported before we end up buying them. 

Food products, sheep and cattle going to the meatworks, building supplies - all of that stuff. 

And the problem with that, is that Megan Woods - as Energy and Resources Minister - can wave the stick at the petrol companies if they don’t pass on the savings, but that’s about it. 

As far as I’m aware, no other industry or sector can be told what to charge for their products and services. And so if transport companies, for example, don’t pass on the fuel savings to their customers, then we just have to like it or lump it. 

The other stumbling block is that reduced fuel taxes benefit people differently. 

If you drive 50 minutes to get to work, you’ll do better out of this than someone who drives 10 minutes to work. Or if you ride a bike or walk. 

And that’s why Christopher Luxon is saying to the Government today ‘not really good enough’. ‘What are you going to do about food prices? What are you doing about rent prices?’. 

Here’s a quote. He’s saying: “People deserve a break”. What he’s actually saying, is people deserve a tax break. 

And I agree with him. And yes, I have changed my tune since last Monday when I said I didn’t think personal tax changes were the answer. 

But there is good reason. If it takes more than a week for the Government to come up with a temporary reduction in petrol tax - which is obviously straightforward and can be done overnight. Then don’t hold your breath for anything like a GST change. In fact, the Finance Minister has already put that in the too-hard-basket. 

Another reason why I now think tax cuts would really help, is that it’s a move that the Government - and the Government alone - has control over. 

As I said before, we don’t know yet whether less petrol tax for three months is going to mean cheaper supermarket bills. I’m picking that it won’t. I’m picking that the cheese will still be north of $10 a kilo - especially with international milk prices going through the roof. I’m not expecting broccoli and cauliflower to be any cheaper either after this. 

So if prices aren’t going to change, isn’t putting more money in our pockets the answer?