Public-sector 'waste' a myth says Cullen

National calls Finance Minister Michael Cullen the "wastemaster general", but where's the public sector waste it is talking about?

National's finance spokesman, John Key, says one big area of waste is in sub-degree tertiary courses, pointing out that Labour has spent $3 billion on them yet two-thirds of students have not completed the courses.

And National intends reviewing virtually all Government spending if it wins the election.

"I'm pretty confident that will throw up some clear examples of areas where there is waste, or in fact duplication," says Mr Key.

But Dr Cullen warns voters to beware of Opposition parties pledging to fund big-ticket promises from cutting public-sector "waste".

"It is the political equivalent of snake oil."

Dr Cullen points to comments recently by former Treasury Secretary Graham Scott, now an Act Party list candidate: "I know more about controlling Government expenditure than the National front bench.

"They are talking as though it will be easy to cut enough fat from the state to pay for tax cuts - it won't be.

"We can get better value for money but it has to be done with a scalpel, not an axe."