Peters insists bed levy still government policy, contradicting National's election pledge
New Zealand First leader Winston Peters says bed levies for Auckland and Queenstown remain government policy, directly contradicting the National Party's pledge to rule out a bed tax if re-elected.
Speaking to RNZ, Peters was clear: "a deal is a deal." He said the signed agreement with Auckland provides for the levies to be considered by the government in 2027, and that nothing has changed. He framed the deal as one struck between the coalition government and those cities, not between National and those cities — a distinction that puts the responsibility on National should it try to walk away.
"If other parties want to campaign on reneging on the deal to even consider the levy, that is up to them," Peters said. He added that New Zealand First's view is that international tourists should be open to a bed levy that helps pay for key tourism infrastructure. RNZ
The comments come two days after Prime Minister Chris Luxon ruled out both a bank tax and an accommodation, or bed, tax as part of a new "no new taxes" election pledge made on Sunday 23 August 2026. 1News
National's ruling out of the bed tax disappointed the mayors of both Auckland and Queenstown. Auckland Mayor Wayne Brown said: "The deal is meaningless if the government cannot honour even a relatively modest commitment to explore an agreed proposal." A commitment to explore a bed tax was part of the Auckland Regional Deal. RNZ
The tension Peters has opened up is built into how coalition governments work under MMP. The coalition agreement is a document signed by three parties. If one party to that agreement declares a policy off the table on its own, the other parties are entitled to say the deal still stands. Peters is doing exactly that. The question of what happens when a coalition commitment and an individual party's election pledge collide is one that New Zealand's MMP system produces from time to time, but rarely with this much detail attached: a signed provision, a named date, and two councils expecting delivery.
The broader context here is that councils, particularly those carrying heavy tourism infrastructure costs, have been pushing for a visitor levy for years. New Zealand councils called for tourist levies or a bed tax as a poll suggested public support for the measure in August 2024. RNZ Queenstown's mayor had previously outlined options for collecting a visitor levy to fund infrastructure directly to Peters when he was minister, including a bed tax model. RNZ A Queenstown referendum on a visitor levy was at one point expected to cost $70,000, separate from the government's $35 International Visitor Conservation and Tourism Levy. RNZ
What makes this politically difficult is the timeline. Peters says the deal provides for the levies to be considered in 2027 — that is, after the next election. National's "no new taxes" pledge is an election promise. The two positions are not yet in direct conflict, because the commitment is to consider, not to implement. But Peters is making clear he regards the consideration itself as non-negotiable, and that any party campaigning against even exploring the levy is campaigning against a signed agreement.
For National, the difficulty is that the bed tax question now sits alongside the wider fiscal stance Luxon announced. Having committed to no new taxes, ruling out the bed levy was consistent with that stance. But it puts National at odds with its coalition partner, with two councils that have agreements in writing, and potentially with public sentiment that has polled in favour of tourist-contributed levies.
Peters, for his part, is drawing a line that costs him nothing now but preserves leverage later. He is not calling for the levy to be implemented tomorrow. He is insisting that the government honour its commitment to look at it in 2027. That is a position designed to survive the election cycle intact, regardless of who is in government after the vote.
