NZ First wants increase in minimum wage to $12

Winston Peters

Winston Peters unveiled part of his economic prescription yesterday, seeking a rise in the minimum wage and calling National's "tax cuts for the rich" untenable.

New Zealand First is a potential kingmaker for Labour or National post-election and the party National is most likely to need to try to form a government.

Mr Peters' stance made it beyond doubt that he would demand smaller tax cuts should he enter talks with National.

National leader Don Brash has previously labelled the tax cuts plan a "bottom line" for his party.

But he refused to give the same commitment yesterday, saying through a spokesman that the party had presented its case to the electorate and would discuss it with like-minded parties after the election, not through the media.

Mr Peters, who was equally critical of Labour's "overtaxation", said both parties' policies were centred on a low-wage economy.

Too many New Zealanders were earning just $10 an hour.

A "top priority" for NZ First would be to raise the minimum wage from $9.50 an hour to $12 - putting $80 a week into low-wage pockets.

The party would also lower the corporate tax rate from 33c to 30c - a move National is deferring - and remove GST from petrol at a cost of just under $600 million a year.

This would save drivers about $9 every time they filled up their tanks.

Mr Peters plans to release the second part of his economic policy, centred on providing incentives for export growth, on Thursday.