Peters to reveal coalition preference 'shortly'

Winston Peters puts his hand in his pocket to buy fund-raising chocolate at Tauranga Boys College yesterday. Picture / Amos Chapple

NZ First leader Winston Peters has promised to reveal his party's preferred coalition partner well before the September 17 election.

Speculation has centred on whether he would back Labour or National if either party wanted him to join the next government.

NZ First has faded in the polls during the election campaign and yesterday Mr Peters launched an attack on National's tax policy.

Mr Peters admitted today that the speculation had "damaged us in this campaign".

He added: "I recognise that. This is unfair, but we deal with unfairness, and as a consequence there will be nobody in any doubt shortly as to what our position is going to be."

Earlier today, National finance spokesman John Key said NZ First had to make up its mind whether he supported tax cuts or welfarism.

"Mr Peters continues to dither ... our tax plan has been costed and given the green light by independent experts," he said.

"New Zealand does not have a debt problem -- we have a growth problem. National is not borrowing to fund tax cuts, in fact we are running surpluses larger than Labour did for its first four years in office."

Earlier this week Dr Brash described Mr Peters as "largely irrelevant''.

Labour leader Helen Clark said Mr Peter's attack indicated National was running out of potential coalition partners.

- NEWSTALK ZB, NZPA, HERALD ONLINE STAFF