KEY POINTS:
National is promising to spend $5 billion more than Labour on infrastructure over the next six years and will borrow to do so, the party's leader John Key says.
Mr Key outlined the central parts of National's infrastrucure plans to the party's annual conference in Wellington today.
Mr Key said National would spend up to an extra $500 million more than Labour on key infrastructure such as roads. Once other promised investments like its $1.5 billion broadband plan were taken into account National would be spending $5 billion more on infrastructure than Labour over the next six years.
Mr Key said National was prepared to borrow for the increased spending, with the party projecting its plans would raise New Zealand's gross debt to GDP ratio by 2 per cent.
At the moment gross debt is around 18 per cent, but it is already projected to slip back to around 20 per cent in the next three years, based on Labour's spending plans.
Mr Key said National would also develop a 20 year national infrastructure plan that would spell out priority projects and appoint a minister of infrastructure to oversee its implementation.
"National believes building better infrastructure is essential to fuelling higher levels of non-inflationary economic growth for years to come," Mr Key said.
But Prime Minister Helen Clark today said National's borrowing plan was "reckless" and "Muldoonist". She accused Mr Key of "gambling with the future".
Mr Key yesterday announced National would fast track a second round of tax cuts.
National would incorporate Labour's October 1 tax cuts, bring forward a second round to April 2009 - a year earlier than Labour - and a third round to April 2010.
Labour's planned third round would not take effect until April 2011.
Mr Key did not explain how National will pay for the promised larger cuts, saying that would be unveiled in the election campaign.
He said National would not borrow to pay for the tax cuts, although it was prepared to extend government debt to pay for new infrastructure.
Finance Minister Michael Cullen yesterday accused Mr Key of "credit card economics" .
Mr Key yesterday also yesterday signalled "modest changes" to KiwiSaver.
He and National Party president Judy Kirk also warned delegates against complacency in the face of National's large poll lead over Labour.
Mrs Kirk said party members needed to be prepared for Labour to "throw the kitchen sink at us" to stay in power.
- NZPA
