Nats gear for blast at Labour

National will focus its firepower on Michael Cullen, the "Wastemaster-General", today in a bid to to convince voters his claims that tax cuts will drive up mortgage rates and slash social spending are wrong.

Finance spokesman John Key will lead the offensive at National's annual conference in Wellington.

Buoyed by recent polls which put the two biggest political parties neck and neck, National delegates are in good spirits. But leader Don Brash says there will be no room for backslapping this weekend.

"This election is not by any means won yet. There's a lot of hard work ahead. There's absolutely no room for complacency."

National's key task, he said, was to successfully refute charges led by Dr Cullen that National's tax cuts would result in drastic cuts in education and health care and push interest rates up.

Dr Cullen claims National's tax cuts, combined with other spending, would cost an extra $7.5 billion a year - money he says can't be raised by simply slashing the size of the public service and some programmes.

Yesterday Dr Brash, who has rejected the $7.5 billion claim, said National's tax policy could be released as late as three weeks before the election.

The policy is understood to be ready, but National has argued Labour might try to steal elements of it if it were released now - even though Dr Cullen has ruled out personal tax rate changes.

In the meantime National will focus on trying to win votes by stressing the profligacy of the Government - characterised by what Mr Key will today call "Helen Clark - the Prime Moneywaster and her sidekick the Wastemaster-General."

They had hoarded money, then squandered it on low-value schemes and an overweight core public sector, Mr Key is expected to argue.

National will instead be a conservative and careful economic caretaker and invest in a personal tax cut plan which would keep the best and brightest in the country.

Corporate tax rate changes are also essential to attract foreign investment. Six years ago New Zealand's company tax rate was 33 per cent - below the OECD average of 35.1.Today that average rate is 30 per cent and the rest of the world is leaving New Zealand behind, he will say.

The Council of Trade Unions yesterday rejected that theory, launching a campaign delivering a "serious warning to working people about what they could expect from a National Government".

Under National, workers would get lower wage rises, reduced job security and cuts in holiday, sick and bereavement leave, president Ross Wilson said.