"National's inability to get its tax cut legislation passed before the elections makes a nonsense of their election campaign," Labour finance spokesperson Michael Cullen said today.

"This is especially so as Mrs Shipley is not prepared to make support for the cuts a pre-condition for the formation of any new National-led government post-election.

"They now have no bottom line and have lost what was going to be the key plank in their manifesto.

"It leaves them quite literally standing for nothing," Dr Cullen said.

"It is the sharpest proof yet that National has lost any mandate to govern. Its patched-together coalition of convenience is flying apart as the rats start running for the life boats.

"Jenny Shipley was prepared to buy the votes she needed in best National Party tradition
but ran out of cash.

"The fact is that the MPs she relies upon for her majority have realised that National's tax cutting agenda is out of step with public opinion.

"Most New Zealanders are alarmed at the growing gap between rich and poor in New Zealand and want to see that gap closed rather than made wider.

"They would prefer the money to be spent on providing a decent income in old age, on affordable housing for New Zealand's poorest families, on health and education and on assisting the productive sector," Dr Cullen said.

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