Tax cuts are still on National's agenda, says Key

National will campaign on tax cuts at the next election, the party's finance spokesman John Key said today.

He told delegates at National's Canterbury-Westland regional conference in Picton he wanted to dispel media suggestions that there was a re-think going on in the party.

"Tax cuts and better incentives for New Zealand workers are central to our growth strategy," he said.

"They are most definitely on the agenda and will remain so."

Mr Key described the tax cut package National offered at last year's election as the most comprehensive plan since the economic reforms of the 1980s.

It meant 85 per cent of taxpayers would have paid tax at only 19 per cent or less, and only 3 per cent would have paid the top rate of 39 per cent.

"We cannot predict what's going to happen in the next two and a half years with the fiscal and economic outlook," he said.

"So while the exact details will certainly be different, let me say quite categorically tax cuts are very much centre-stage in our thinking."

Mr Key said Labour showed no sign of wanting to cut taxes, only to reward selected groups.

That meant hard-working people had "a helpless sense of despair and frustration" that they were no longer able to make a material difference to their own lives.

Mr Key also used his speech to compare New Zealand's economic growth rate with that of other countries, and to global trends.

He said the International Monetary Fund last month cut New Zealand's forecast growth from 2.5 per cent last September to 0.9 per cent.

"In short, it found New Zealand is expected to grow less than any other advanced economy -- except Portugal -- this year."

- NZPA