Labour leader Chris Hipkins has questioned whether the South Island is receiving an appropriate share of national transport funding, while cautioning against judging all government investment solely on population.

Speaking to Chris Lynch Media following a business summit at Te Pae in Christchurch, Hipkins said one of the strongest messages from those attending was a concern that the South Island was being overlooked, particularly when it came to transport.

However, he did not accept that every category of government spending should be distributed according to population.

“I think you have to be a little careful about population based funding,” Hipkins said.

He pointed to the rebuilding of Canterbury schools following the earthquakes, saying the region received a disproportionate amount of education investment because that was where the need existed.

“You do want to make sure that funding is based on need,” Hipkins said.

However, he questioned figures suggesting the South Island was receiving about 11 per cent of national transport investment.

“Nobody could claim the South Island has only 11 per cent of the transport needs in New Zealand,” Hipkins said.

“I think things have probably got a little bit out of balance.”

Hipkins said businesses attending the summit had also raised concerns about uncertainty surrounding infrastructure investment.

“The on again, off again nature of infrastructure investment in New Zealand is something that is causing businesses a lot of frustration.”

He said businesses needed greater certainty so they could plan future investment, recruit workers and develop the capacity required to deliver major projects.

Hipkins said Christchurch had developed strong economic momentum following the earthquakes and needed continued investment to maintain it.

“There is a real vibrancy around Christchurch at the moment. I think it is a city on the move.”

He said the city had worked hard to rebuild and reinvent itself.

“We have got to keep the foot on the accelerator and make sure we are supporting that momentum.”

Hipkins said small businesses would be central to Labour’s economic plans, noting they made up about 97 per cent of New Zealand enterprises.

He said his own upbringing had given him an understanding of the pressures faced by people running small businesses.

“My dad was self employed. He was a maintenance contractor, so I saw firsthand the challenges of running a small business.”

Hipkins said those challenges included uncertain income, finding skilled workers and managing government requirements.

“Small businesses do not have big administrative teams and big compliance teams. Often, it is the owner doing everything.”

He said the Government needed to consider the effect of its decisions on smaller operators, rather than developing policies primarily with large businesses in mind.

Turning to the election campaign, Hipkins acknowledged Labour faced a difficult political environment and said many voters were frustrated with both major parties.

He said Labour needed to spend the coming weeks explaining what it would do differently, rather than concentrating solely on criticism of the Government.

“We have got to be talking about our vision and what we are going to offer New Zealanders.”

Hipkins said Labour’s campaign would concentrate on the cost of living, jobs, health and housing.

He said the party would promote measures intended to reduce household expenses, including lowering public transport and healthcare costs and making rooftop solar power easier and more affordable to install.

“We have got to focus on the things that make a difference in people’s everyday lives.”

Hipkins predicted the election would be close and said the final result remained difficult to forecast.

He claimed National MPs were divided and unhappy, and said the governing parties did not trust one another.

Asked whether Labour could work with The Opportunity Party, Hipkins declined to make a commitment.

He said it was too early to determine what the eventual election result or possible coalition negotiations would look like.

Hipkins said larger political parties also had a responsibility to prevent smaller parties from exercising disproportionate influence over a government.

He questioned whether voters considering The Opportunity Party knew which major party it would ultimately support.

“If you vote for The Opportunity Party, you do not know what government you are going to get.”

Hipkins said Labour had previously worked constructively with the Green Party, although the two parties did not agree on every policy.

He said Te Pāti Māori would need to resolve its internal problems before it could be considered ready to participate in government.

Hipkins also praised Labour’s Christchurch MPs, including Megan Woods, Reuben Davidson, Dan Rosewarne and George Hampton.

He said the retirement of Christchurch Central MP Duncan Webb at the election would be a loss to Labour, but believed the party retained a strong team across the South Island.

Hipkins said the South Island had lacked sufficient influence around the Cabinet table during the current parliamentary term.

“The South Island needs a stronger voice in government, and Labour intends to provide that.”