Ardern at her first Cabinet meeting of the year on Monday.

Prime Minister Jacinda Ardern has told the Labour caucus 2019 will be a year of "delivery" for the Government.

Speaking to her Labour MPs on Wednesday morning as they gathered in Martinborough for a multi-day planning retreat, Ardern opened the meeting recounting her recent trip to Europe.

But she noted that any international praise garnered in Europe was essentially irrelevant back home.

"For us domestically it doesn't really matter what the international community does or says, it only matters what we deliver," Ardern said from the Wairarapa town.

The meeting comes as the Government faces serious challenges in one of its core policy areas: Housing.

Henry Cooke/Stuff Labour's MPs are at a planning retreat in Martinborough.

Labour's flagship KiwiBuild policy has faltered, with just 300 affordable homes expected to be built by the July deadline - 700 less than the Government's own target. The former boss of the KiwiBuild unit has now resigned in the face of an investigation into his behaviour, and is suing the Government for constructive dismissal. Rents have also continued a steady increase and the state home buildup has not been as rapid as some hoped.

Ardern said 2018 had been a year where the Government had set up the "infrastructure" for serious change and pumped money into health and education. 2019, by contrast, would be more focused on delivery.

"2019 I think for us as a team is going to be characterised by the word 'delivery'. 2018 was obviously a huge year for us: bedding in as a new Government, setting up the infrastructure for a significant change in direction for New Zealand, reinvesting in those core services - health and education and housing in our budget."

Henry Cooke/Stuff Ardern and her Labour caucus are at a planning retreat for several days in Martinborough.

"That work has now been set in place. 2019 is now the year that a lot of delivery will be required of us and is actually already underway."

Ardern singled out climate change, housing, mental health, and the recommendations of the tax working group as key areas of focus.

Enacting the tax working group's likely recommendation of a capital gains tax would be a significant fight for the Government and within the Government, as Labour's coalition partner NZ First have expressed reservations about such a tax in the past.

Ardern has promised that any change recommended by the group would not go into effect until after the next election, giving voters a chance to veto the change if they disliked it.

She also noted the work done in Europe on two free trade deals: one with the European Union (EU), and one with the United Kingdom once it left the EU.

"To hear from our counterparts in the EU their enthusiasm for concluding that deal within the year was pretty extraordinary," Ardern said of the deal, which is potentially worth around $20b of trade.

"That would make it the fastest FTA the EU have ever negotiatied."

The Prime Minister ended her presentation with a line from past Labour governments.

"We do not claim perfection but we do claim a considerable advance on where we have came from."

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