Peters loser of leaders' first debate

There is one thing Helen Clark and Don Brash can agree on - neither would be happy to have NZ First leader Winston Peters as their deputy prime minister.

On last night's first head-to-head election debate on Radio NZ between the two main leaders, each was asked for a yes or no on the question.

To audience cheers, Helen Clark delivered an emphatic "no".

To laughter, Dr Brash replied: "Certainly my answer is no also".

Last night Mr Peters, who has never indicated any preference for a coalition partner, told the Herald he was not moved by his possible partners. "I'm not interested in what they've got to say at all. I'm not going to have them or anyone misconstrue what this election's about."

In other areas, Mr Brash said Kiwibank was "not for sale" in a change in the party's asset sales policy released only in March.

During the debate, he indicated a change in policy.

National state assets policy stated it would keep Kiwibank for at least the first term in office so the bank's future could be decided on the basis of "full and complete information".

Previous National leader Bill English went into the 2002 election wanting to sell the bank.

But Dr Brash said last night that he had made an explicit promise not to sell Kiwibank or TVNZ.

Radio NZ presenter Linda Clark pointed out that National's finance spokesman John Key had said months ago Kiwibank would not be sold in the first term but its ownership would be reviewed.

Dr Brash replied: "It's a while since I've read that speech Linda, I admit, but let me say that I will not be prime minister of this country when we sell Kiwibank."

The bank was set up during Labour's first term, promoted by then Alliance leader Jim Anderton, now head of the Progressive Party.

* New Zealand First is set to announce it would axe GST on petrol.

Leader Winston Peters will announce the plan in a speech in Morrinsville on Monday.

Removing the tax is likely to appeal to motorists facing high petrol prices due to rising oil prices.

GST on diesel would remain, as it is taxed differently.

The policy would cut the cost of a litre of 91-octane petrol by about 15c, a saving on a tank of about $10.