More to come despite cuts: Labour

21:40, Aug 25 2014

The Labour Party still has some policy tricks up its sleeve, despite having to cut back on spending plans in light of the lower economic forecasts.

Labour had to trim $300 million off spending plans after the Treasury pre-election economic and fiscal update announced last week.

Leader David Cunliffe said the party was not dumping anything they had already announced, but had dropped six of seven upcoming spending commitments.

"And we still have more announcements up our sleeves that we've yet to bring forward to the public, both some that involve further spending and some that don't," he told TVNZ's Breakfast programme.

Some expenditure had been delayed including a six month delay in the start of Labour's pledge to give free doctors visits to the over 65s.

"I think that's a fairly minor but a responsible set of changes that offsets what has surprised a number of people, including bank economists," Cunliffe said.

"The proof of the pudding is the rock star recovery is turning into a hangover pretty fast."

Cunliffe said overseas examples showed National's policy to help cash-strapped first-home buyers with increased grants to build new homes would fail.

"They tried it in Australia and it failed miserably. It didn't help the buyers - what it did was it jacked up the prices and helped those who already owned," he said.

"They tried it twice, it failed both times, and that's why the New Zealand Treasury recommended to the National government that they do not do this, because it doesn't work."