KEY POINTS:
National has responded to Finance Minister Michael Cullen's statement on the economy by dismissing his concerns for working families as "little more than crocodile tears".
As attention turns to how the global economic situation might threaten New Zealand, Dr Cullen penned an article in yesterday's Herald outlining his view that the Government's fiscal policy had put the country in a good position to respond if conditions deteriorated further.
But National finance spokesman Bill English attacked his words yesterday, saying continuing high interest rates and living costs were worrying families. "These pressures are partly the result of eight years of loose management of tax windfalls," he said.
"Michael Cullen's published concerns for working families are little more than crocodile tears."
National, while clearly keen to attack Dr Cullen's economic management during his time as Finance Minister, is wary of being seen to be talking the economy down.
In 2006, former National leader Don Brash predicted in a speech that if business confidence levels did not change a recession would "almost certainly" occur - but one never did.
Instead Labour has been able to boast of the longest period of economic growth since World War II.
Mr English argued yesterday that Labour had missed opportunities during that period of growth to get the country in even better shape for tough times should they occur.
"They've had more money than they've known what to do with, and the books are in reasonable shape," he said. "But the cost of that has been high inflation and the highest interest rates in the developed world."
The economy is shaping up to potentially become a significant battleground in this year's election campaign, with tax cuts and interest rates particularly in the spotlight.
After Reserve Bank Governor Alan Bollard yesterday left the official cash rate unchanged at 8.25 per cent, New Zealand First leader Winston Peters waded into the debate, describing the situation as "outrageous".
Mr Peters, who has called in vain for a change to the Reserve Bank Act to allow for lower interest rates, yesterday attacked the financial approaches of both the major parties.
