Prime Minister Bill English has made his strongest attacks on Labour's housing policy yet, saying its promise to build 100,000 houses while opposing two major developments in Auckland was "ridiculous".
English also said the party was contradicting itself by planning a large building programme while planning to cut migrant worker numbers, saying its approach was "just dumb".
The Government announced last week it would build 34,000 houses in 10 years, demolishing around 8000 homes to make way for them.
About 21,000 will be sold on the open market, and between 20 to 50 per cent will be sold for less than $650,000.
Labour has described National's policy as "embarrassing". It has proposed building 100,000 houses in 10 years, half of them in Auckland, and all of them for less than $600,000.