National: Labour does not understand economic problems

ONE NEWS: The truce between Labour and National on plans to ease New Zealand's economic woes appears to have been very short-lived. This as a poll shows them not far apart in the economic management stakes.

John Key on Sunday offered to work with the government on protecting New Zealand's banking system.

Now he's questioning whether Labour leader Helen Clark even understands what to do.

A sure way to win support right now is to promise action when it comes to New Zealand's troubled economy.

"I think this is a situation where you've got to put the economy ahead of politics," says Key.

Key appeared to do just that on Sunday, taking the rare step of offering to work with labour on a wholesale lending guarantee scheme to ensure NZ's banks can continue to comfortably borrow offshore.

On Monday, that hand of economic friendship was quickly withdrawn and replaced with a slap in the face.

"There's no question that a Labour, Greens, New Zealand First government will mean it will be slow economic growth, no growth. I think you will lose jobs and overall our economy and New Zealand standards of living will fall," Key says.

He's challenging the prime minister's ability to fully grasp the country's economic woes.

"I don't know whether she understands this stuff at all but there's no indication she does," he says.

The ONE News Colmar Brunton poll shows 35% of respondents believe New Zealand's economic strife its down to international forces, while 14% say it's the New Zealand government.

Almost half of voters believe both international and domestic forces are responsible.

It's clear what the domestic focus is on right now.

Key and his team are hitting the road in earnest, campaigning around the country on a bus. One of their key messages is trust him to lead New Zealand through the tough economic times.

Forty-eight percent of voters polled say Key is best placed to take charge of the economy, although Clark is not far behind on 41%.

Some are warning against National creating economic policy on the hoof, saying it will panic people unnecessarily.

"Let's not take this disaster abroad and locally into some political argument basedon winning an election in a few days time," says Winston Peters, New Zealand First leader.

But others say it's vital New Zealand is well prepared now that the economic bubble has burst.