Clark warns of radical agenda

Helen Clark and husband Peter Davis arrive at the Town Hall. Picture / Glenn Jeffrey

This election is the "last throw of the dice" for those who brought New Zealand Rogernomics and Ruthanasia, Prime Minister Helen Clark told Labour's election campaign launch yesterday.

Opening the party's bid for a historic third term, she warned supporters that, like rust, the "forces of neo-liberalism" had never slept since Labour took power from them in 1999.

Rogernomics and Ruthanasia are terms referring to the big reforms of the 1980s and early 1990s under then Labour Finance Minister Roger Douglas and then National Finance Minister Ruth Richardson.

Before more than 1000 enthusiastic supporters in the Auckland Town Hall, Helen Clark said there was no mood for radical change.

She warned that National was offering to squander billions of dollars on tax cuts because it fundamentally believed that the "only good government is small government".

"Their agenda is to reduce the size of the revenue base so that there is no option but to cut services. That's called a strategic deficit.

"That's the New Right agenda and it's fundamentally damaging to our country. New Zealand has been down that road before. Those who don't learn from history are doomed to repeat it."

National leader Don Brash announces his party's tax cut plan in Auckland this afternoon, after finance spokesman John Key revealed on Friday it would cost $3.9 billion annually from 2008-09.

Last Thursday Labour surprised by releasing a $438 million a year "family tax relief" plan that extends the Working for Families package to 60,000 more families.

Helen Clark said yesterday that it was unfair to give the same tax cut to a single person on $60,000 as to a family where maybe five people were living on the same income.

She ran through Labour's seven promises it will use on its pledge card and said the last pledge would be Labour's KiwiSaver scheme to help people buy their first home. The scheme was announced in May's Budget.

The card is a device used by Labour in the last two elections. As well as KiwiSaver, this time it includes promises to axe student loan interest, put a time limit on Treaty claims, and provide more apprenticeships, police, and cataract and joint operations.

Helen Clark told journalists later that there was still policy to announce in the coming weeks.

Actor Sam Neill spoke before Helen Clark, and delivered a rousing endorsement of her and Labour, while attacking Dr Brash.

"I've been quoted before as saying a Don Brash-led government would put this country back 20 years.

"I want to retract that statement. I was wrong. What I meant was 30 years," Neill said to loud cheers.

Praising Labour as a "fair-minded and sensible Government", Neill said the Iraq war was a "bloody fiasco" and "founded on lies".

"And if Don Brash had his way, we'd be there by lunchtime."

On tax cuts, Neill said: "Only a fool or a fraudster or a conman will tell you that you can have better health and education, and still give more tax cuts to the rich".