KEY POINTS:
Labour is set to unveil its own special assistance plan for people affected by fallout from the global financial crisis, as it goes head-to-head with National in a bid to win votes in next week's election.
Prime Minister Helen Clark yesterday revealed she is planning support for a
"particular group" of people who will need help as the economy is buffeted by international events.
"We've been looking very closely at the implications for New Zealand of the international financial crisis for some time," the Prime Minister said during a campaign stop in Lower Hutt.
"I've talked a lot about creating employment through bringing forward Government expenditure as part of the economic stimulus package, but now I'm referring to individualised support."
More would be announced in coming days, but she described the support as "transitional allowances".
Labour's move follows National leader John Key's discussion at the weekend of a plan to support people who lose their jobs in the looming tough times.
Mr Key surprised when he suggested support because such help is political territory more traditionally associated with Labour than National.
Mr Key is set to announce more detail about how he would help workers who lose their jobs later this week with means-tested and time limited payments.
He has talked about the help as being aimed at people who have commitments such as mortgages and who cannot make their payments when they lose their jobs.
The international financial crisis and growing threat of global recession are dominating the final weeks of an election campaign which has been notable so far for its lack of lavish spending commitments.
On the campaign trail both Helen Clark and John Key have sensed that people are feeling more concerned about their jobs and their financial security and the talk about extra support is clearly aimed at winning over those who are worried.
While there is little money left to make promises with in the Government's books there is an additional $100 million plus set to pour in from the fees that banks and financial institutions will have to pay in order to be part of the deposit guarantee scheme.
National is refusing to comment on whether it might be planning to use that money to fund its support plan, but Helen Clark yesterday ruled out Labour doing that.
"I think he's been making it up as he goes along," she said of Mr Key.
"And also I think people would have some concerns if money which might be gathered in by the Government for a bank deposit scheme, then wasn't there if the money was needed."
She suggested that would make people "very nervous" and said Labour had no plan to "raid that" source of funding.
It remains unclear, therefore, how Labour or National plan to fund their support schemes.
The other big remaining unknown is the potential cost of such a plan. The extent of the international financial crisis has been unpredictable and it is very difficult to forecast how many New Zealanders might lose their jobs when the fallout hits.
Both major parties are set to potentially make open-ended promises that they cannot confidently put a price tag on.
Helen Clark said the support she was hinting at would be in addition to two retraining allowances she had already announced during the election campaign.
