National promises ongoing tax cuts

A National government would fund an "ongoing campaign" of tax cuts by slashing a swelling number of "pet projects" and government bureaucrats, National finance spokesman John Key told the party's annual conference today.

Mr Key said New Zealand had experienced excellent economic growth over the past six years, but the Government was reaping the gains at the expense of ordinary workers.

Billions of dollars of extra tax had been "squandered on low-value schemes and in building an overweight core state sector".

National would take a far more disciplined approach and would use a "portion of the growth in revenue to fund an ongoing campaign of lowering taxes", he said.

National has said it may hold back the details of its tax policy to within three weeks of an election.

Mr Key said the Government's desire to spend surplus money rather than return it through tax cuts showed it was out of touch with mainstream New Zealand.

Labour has denied that its spending is growing out of control -- pointing out that it has been roughly keeping pace with recent strong economic growth.

It has also hit out at the cost of many of National's policies, saying they will require spending cuts to health and education or an increase in debt.

But Mr Key said National would "slash and burn" waste, while retaining strong health and education services.

One area it would target was the Government's Working For Families package.

The package turned middle income workers into beneficiaries and Mr Key said he wanted to "fix" it.

"There is something wrong when we tax families to the limit and beyond and then have an expensive bureaucracy to channel the money back to them again."

Mr Key referred to Prime Minister Helen Clark as the "Prime Moneywaster" and Finance Minister Michael Cullen as the "Wastemaster-General" -- nicknames repeated by other speakers throughout the morning.

Far from the Government's claims, National would run a careful, conservative government, he said.

Mr Key's speech topped off a morning of attacks on the Government's approach and philosophies.

No major new policy will be released over the weekend conference, but speakers were determined to spell out the differences between National and Labour.

Deputy leader Gerry Brownlee attacked Labour's Treaty of Waitangi policies and its attempts to shore up union support.

He said the Government had given the appearance of backtracking on race issues, but had in fact changed little.

In a brief opening address National leader Don Brash told delegates an election win was close but the Government would use the full weight of its "massive spin machine" to try to crush National's hopes.

He warned delegates against complacency, saying Labour would fight hard to stay in power.

Dr Brash will deliver his leader's speech tomorrow.

It is expected to focus on the differences between National and Labour in the areas of tax, welfare, law and order, education, and race.

Party president Judy Kirk today spelt out to delegates the importance of the party vote, for which National failed to campaign effectively in 2002.

The party vote determines how many seats each party wins in Parliament, irrespective of the number of electorate seats they capture.

- NZPA