NEW ZEALAND: Prime Minister set to fire opening election salvo

Parliament resumes today, with Prime Minister Helen Clark set to fire her opening shots of this year's election campaign.

Miss Clark told journalists yesterday her opening statement to Parliament would be a broad-brush affair setting out Labour's long-term programme on improving economic performance, health, education and infrastructure.

"It is a big picture speech and it's looking well out at the issues that we need to tackle in government and clearly these are not things you are going to complete by September this year," Miss Clark said.

The speech would cover productivity, work participation, training, savings and other "big issues that will determine the country's future".

National leader Don Brash put welfare reform on the election campaign agenda in a speech last week and Miss Clark yesterday counterattacked with the Government's plans to change the welfare system.

The Government was moving closer to making decisions to create a streamlined single benefit system that would move the focus on moving beneficiaries from "dependence to independence" where it was possible, Miss Clark said.

New Zealand was short of workers and the Government would also be looking to help more women into the workplace through childcare assistance and other policies.

The number of women in the workplace was well below other countries and needed to increase if the New Zealand household average income was to increase, Miss Clark said.

"If we could get the women's participation rate up to the level of the top Scandinavian countries we would close the gap between the average and where we are by a third."

The speech would also look at savings for first-time house buyers and retirement but policy detail would not be announced until the budget.

Miss Clark indicated she was still aiming for a September election and despite a steady lead in the polls was not taking anything for granted.

"You have to earn your place in this job and government every day you are in it."

She expected Dr Brash and National would get some support from voters after his speech on welfare reform advocating getting more solo mothers off benefits and back into work.

"Visibility in itself can make a difference...It would almost be a miracle if it didn't register," Miss Clark said.

"But at the end of the day we are eight months out from a general election, people are looking where they want the country to go and who has got the set of policies to increase our wellbeing," Miss Clark said.

After Miss Clark's speech today, Dr Brash will respond and all other parties will follow in a set piece debate that is expected to take up at least the first week of Parliament.

Parliament's resumption in February is much earlier than usual and Cabinet also took the unusual step of returning to business in mid-January.

Last year Labour completed the passage of its most controversial legislation in an attempt to clear the decks of any issues that could trip it up in the run up to the election.

National is still hoping to increase its popularity around issues such as the Government's Maori policy, welfare reform and tax cuts.

When questioned about tax cuts yesterday, Miss Clark said she had never ruled them in or out, but she believed that any tax cuts would make families worse off as they would end up having to pay more for health and education due to reduced government spending.

,,, yeah, I wonder too. Her socialist policies are forcing around 450 Kiwis a week out of New Zealand to live in Australia. Here's her answer to that problem...

A Government push to get more women into the workplace has drawn widespread support but words of caution from its closest allies.

Prime Minister Helen Clark will develop the plan in her "state of the nation" speech today. It includes making childcare more accessible so as to tackle worker shortages and boost productivity.

The speech will be the opening shot in the election campaign leading to a likely September 17 polling date.

It will set out the Government's agenda to help people save for their first home, tertiary education and retirement.

Miss Clark said yesterday the shortage of women in the workforce was one reason why New Zealand's gdp per capita had fallen below that of similar countries.

Cheaper and more available childcare, combined with recent improvements in paid parental leave and legislation allowing four weeks' holiday, would give women more confidence to go back to work.

"All of these are important in ensuring that women know there is somewhere secure for their kids to be if they are working and, importantly, getting that work-life balance for them."

Closer case management of beneficiaries and a shift to a single benefit would also help women to move from welfare into work.

But United Future leader Peter Dunne urged caution, warning of the potentially harmful social effects of depriving children of the care and attention of a parent at home.

"We've already got the latchkey generation growing up...and more conservative social values coming through in that group saying we want to be at home with our kids because our parents weren't at home with us."

Unions have backed an increase in women in the workplace. Council of Trade Unions vice-president Helen Kelly said increased childcare support was good for the economy and would improve work opportunities for thousands of women. But it would have to mean decent jobs.

This would mean more women in work to assist with increasing the government's $NZ7,4b fiscal surplus... Klark will want to import people from third world countries and put them on welfare to keep the demographics loaded in her favour.

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