Cullen fuels up his Honda Accord

Finance Minister Michael Cullen challenged his National rival face-to-face during a debate yesterday to say what his spending promises will cost and what will go to pay for tax cuts.

Under pressure from falling polls, Dr Cullen has stepped up attacks on National over its tax cuts package which is estimated to cost $3.9 billion a year by 2008-09.

Before a business audience at the Herald's Mood of the Boardroom special report launch in Auckland, he barracked National finance spokesman John Key over the details of its promises.

As well as criticising National's plans to increase debt to help pay for the package, he challenged Mr Key to come up with details of its spending and saving promises.

National has already outlined broad areas where it will make savings, identifying sub-degree tertiary courses, low quality departmental spending, business help grants, and welfare delivery changes. It will also axe some Labour initiatives.

Dr Cullen said National had yet to cost major policy promises like speeding up Treaty of Waitangi negotiations, which must inevitably increase the amount to be spent over the next three years by hundreds of millions of dollars.

He said National had also not costed abolishing parole for serious offenders, which Labour estimated would cost about $700 million a year unless judges reduced jail sentences.

Later Dr Cullen issued a statement adding compulsory bulk-funding for schools and work for the dole to the list of un-costed or under-estimated National promises.

Asked during the debate to respond to criticism tax cuts involved spending from savings National had not yet found, Mr Key said that would be valid if the spending cuts were going to be dramatic.

But he said they would be "minor" and "at the margin" compared to total Government spending.

Your choice - fast or reliable

Michael Cullen thinks National's tax cuts are like an expensive Ferrari while Labour's economic plans resemble a reliable, affordable Honda Accord. So how do the cars compare?

Honda Accord

* Mr Reliable with space and style.

* Likely colour - silver or white. Zero to mild crowd-pulling ability, maybe more with charismatic driver.

* Japanese, born in 1976 post-oil crisis as a high-mileage, low-emission sedan.

* Accords can stretch to 210km/h.

Ferrari

* Sleek, streamlined, sexy.

* Likely colour - steamy hot red. Draws eyes instantly, driver irrelevant.

* Italian, started making racing cars in 1946, and road cars two years later.

* Road cars can exceed 300km/h.