Cullen or Key the starkest choice

Michael Cullen

There was never any doubt: it was John Key's audience.

The 200 business leaders who gathered to see Finance Minister Michael Cullen go head to head with National's Key yesterday morning had already had their say in the New Zealand Herald's mood of the boardroom survey: 89.2 per cent believed Key would make the best Minister of Finance.

Cullen tipped his hat to the popularity of his rival when he rose to address them. "Good morning ladies and gentlemen - and friend," began his address, sparking appreciative laughter.

But chuckles paled in comparison to the open admiration enjoyed by Key.

"He's great," one businessman, who had never voted National in the past, whispered to a chief executive across the table as Key finished speaking.

"That was a vision, as opposed to a policy," the other replied.

Some did express surprise at the dominance of the preference for National's policies shown by the survey, even though business usually veers to the right of the political spectrum. Almost 90 per cent of the 90 chief executives surveyed said National offered the best policy mix for business compared with just over 5 per cent in favour of Labour.

"The position was predictable, but I did not think it would be as extreme as it was," said Bancorp managing director Craig Brownie.

Several business leaders said the debate had brought home the extent to which this election was a choice between two different philosophies.

"We haven't had a choice this stark for years," said one.

"It's the first election for some time where we have seen things this polarised," said another.

Not surprisingly the question of the corporate tax rate was raised by the audience - but so was law and order, and the perception Government policies were creating a society that was too dependent.

At times, Cullen appeared frustrated with the audience's mood and his rival.

"Despite your feelings, you've been doing very well over the last few years," he said.

He rejected unfavourable comparisons between New Zealand's corporate tax rate and Australia's.

"I've said many times to New Zealand business - and nobody's taken me up on the offer - give me a payroll tax the size of Australia's in percentage terms and you'll get a 20 per cent company tax rate."

Later, the usually cool Cullen admonished Key not to shout.

"I know this is your audience, but I'm allowed to get the odd word in," Cullen said.

Westpac chief executive Ann Sherry welcomed the frankness of the exchange.

"The last couple of times I've seen you together I think you've been far too polite," she said. "It's so good to see the gloves are off."

- additional reporting Richard Inder, Liam Dann