The National Party is defending its plan to use foreign borrowing to fund infrastructure improvements, which Labour has criticised as gimmicky and "Muldoonist".
Leader John Key told the National Party conference on Sunday that the party would spend $500 million a year more on infrastructure than planned by Labour, if it becomes government after this year's election.
It would borrow to do so, and would introduce infrastructure bonds and make greater use of public-private partnerships.
John Key said National's infrastructure borrowing will increase New Zealand's debt-to-GDP target by two percentage points to 22%.
The extra $500 million in infrastructure spending is in addition to the $1.5 billion the party has promised for broadband.
The Prime Minister has dismissed National's infrastructure plans as "horribly Muldoonist". Helen Clark says borrowing more money at a time of international market uncertainty is "reckless and gambling with the future".
Finance Minister Michael Cullen says National is gambling with New Zealand's future and is actually borrowing to fund tax cuts.
But Mr Key maintains further tax cuts are affordable in light of National's overall programme. "We are not supporting some things the current government is, and we are supporting a bigger tax cut programme.
"It's quite simple, if we're borrowing and if we're reckless, they're borrowing and they're reckless. We're borrowing for infrastructure, we're not borrowing for tax cuts."
Mr Key will not announce which programmes National would no longer support, until the start of the election campaign.
The National Party says there are two areas from which it will make savings to fund its planned tax cut programme. It won't reveal what these are, but is not ruling out changes to KiwiSaver.
John Key told Morning Report on Monday the debt component is small relative to the overall improvement in infrastructure and, subsequently, in productivity.
Funding shortfall
John Key told about 700 party delegates in Wellington on Sunday that New Zealand has a significant infrastructure deficit, which has resulted in poor productivity and increased pressure on inflation and interest rates.
He said over the next decade, local government will face an infrastructure funding shortfall of about $30 billion.
Mr Key said a National government would introduce infrastructure bonds and make greater use of public-private partnerships.
He told the conference that a minister of infrastructure would be appointed to oversee a new category of priority state highways called "roads of national significance".
RMA reform
The conference heard that the National Party would reform the Resource Management Act within its first 100 days in government, if it wins this year's general election.
John Key said National would also streamline consents using a call-in process that would require decisions within nine months. It would mean the consents were heard by an independent board of inquiry rather than by local councils.
National's environment spokesperson, Nick Smith, told the conference that speeding up the planning process is critical to lifting economic growth.
"It's about addressing the infrastructure crisis, it's about pulling back on nanny state, it's about delivering on the gearshift that John Key wants in New Zealand's economic performance."
However, Cath Wallace from the Environment and Conservation Organisation, says the changes would exclude ordinary people from the process.
Ms Wallace says they would not be able to afford the lawyers and experts required to speak on submissions before a board of inquiry.
Transport spokesperson Maurice Williamson says Resource Management Act reform would allow new roads to be built much more quickly.
