Labour's spending fails to convince voters

Few voters believe education or hospital services have improved, despite the extra billions of dollars the Government has spent since it came to office, the latest Herald DigiPoll survey says.

Health spending has risen from about $6.6 billion a year when Labour took office to $9.6 billion, but health continues to be the issue of greatest concern to voters, as it was in the lead-up to the last election.

Education funding has risen from $5.5 billion to $8.6 billion and is rated the third most important issue.

Tax has rocketed to be the second major issue of concern following extensive debate over modest measures in the Budget to adjust tax thresholds in 2008.

Concern over law and order and crime has fallen and was rated by only 8.7 per cent as the most important issue. That is down five points on a similar survey a month ago and is half the number in the lead-up to the 2002 election.

And despite the problems that have plagued the police force in the past year, 50 per cent of respondents had a high or very high level of confidence in the police's commitment to the public.

Immigration may have given New Zealand First leader Winston Peters a boost in the latest poll - his personal rating was up six points - but was rated as the most important issue by only 2.4 per cent, almost the same rating it received a month ago and in 2002.

On education, 16.3 per cent believe it has improved since Labour became the Government, 43.8 per cent believe it is worse and 30 per cent say there is no difference.

Despite big funding increases in health, most people, 73.8 per cent, believe hospitals are offering the same or worse services - 17.7 per cent say they are better, 38.3 per cent worse and 35.5 per cent see no difference.

Finance Minister Michael Cullen has indicated one of his priorities is to slow down health spending.

National finance spokesman John Key said the concern over health showed the Government was "throwing money" at the problem without addressing underlying issues of how to improve efficiency.

"Left unchecked, when they slow the rate of spending, the wheels are going to fall off."

Britain's Labour Government had had similar problems, increasing National Health spending by huge amounts in six years with only small gains in outcomes.

Mr Key said bureaucrats had increased the administrative burden enormously. "These bureaucrats are sitting around dreaming up things to do. The net effect is a huge reduction in productivity by people on the front end."

Act health spokeswoman Heather Roy said it was more and more apparent that the public sector "can't cope with even reasonable demands. That's why it's the number one issue. Everybody knows someone waiting too long [for an operation]."

Associate Finance and Education Minister Trevor Mallard said the tax issue had been at the front of people's minds because of the Budget but when there was a full explanation of the policy "it's not an issue".

Neither National's hints at broad tax cuts nor United Future's tax policy was sustainable into the future without reverting to a "Muldoon-like" increase in debt.

Commenting on education, he was not satisfied New Zealand had the best system it could have "but I know that is something that takes decades to work through".
Although 43 per cent of respondents believed education was worse under this Government, he said it was a general survey and not one of parents who had children at school.

- additional reporting: Ruth Berry