Wellington - The state of the economy in New Zealand, which is officially in recession, was the key issue when the main parties formally kicked off their campaigns for next month's general election on Sunday. Prime Minister Helen Clark, whose Labour Party has led minority coalition governments for the last nine years, moved to calm fears about the global financial crisis by announcing that she would guarantee deposits in bank savings accounts.
She also pledged to introduce a stimulus package if needed "to reignite the economy," including a programme of capital expenditure on infrastructure to "ensure New Zealand avoids a hard landing from the international crises."
John Key, leader of the opposition conservative National Party, said, "I'm campaigning on strengthening our economy, on rising to the challenge presented by tough global conditions and on delivering greater prosperity to New Zealanders and their families."
Key said New Zealanders were "sick of struggling to keep up with the cost of living, they are sick of worrying about soaring interest rates and they are sick of higher taxes."
The latest opinion poll, released by Television New Zealand after the leaders launched their campaigns, showed the Nationals poised for a landslide victory on November 8 with 51 per cent of committed voters favouring them, against 33 per cent for Labour.
The poll of 1,000 voters had a 3.1 per cent margin of error and followed two other recent polls showing the gap between the two main parties narrowing as the election nears.
It would mark a spectacular rise to power for Key, 47, a former currency trader who is the richest man in the New Zealand Parliament, which he joined only six years ago. Clark, 58, a political veteran, has been a Labour Member of Parliament since 1981.
Key accused Labour of ignoring the evolving economic crisis and said, "Getting through this storm will require an astute and economically focused government."
He contrasted his background with Clark's, saying, "I have actually worked in the world of finance and business. Helen Clark hasn't. I have actually picked up a struggling business and made it grow. Helen Clark never has. And I have actually got stuck into a business, trimmed its sails and delivered some profits to its shareholders.
"And that's what I am determined to do for this country."
Key promised that a National government would cut taxes every April for the next three years, on top of reductions the Clark government introduced on October 1, to stimulate the economy.
Both leaders launched their campaigns at large meetings of cheering party faithful in Auckland, the nation's biggest city. A total of 20 parties are putting up candidates for the election which will be fought under a proportional representation voting system designed to ensure minority groups are represented in parliament.
That means coalitions are virtually inevitable and opinion polls indicate that the Greens and the Maori Party, which could win all seven seats reserved for the indigenous people, may hold the balance of power after the election.
