The Govt is still riding high in the popularity stakes, with the Roy Morgan poll recording National up 3 points to 56.5%, and Labour down 3 to 29%. It underlines public confidence in John Key isn’t affected by the extremism in the debate surrounding the anti-smacking referendum. Frustratingly for the Opposition parties, the visceral anger over MPs perks and Ministerial housing allowances doesn’t appear to have hurt the Govt. A revival in business confidence, along with signs of recovery in dairy product markets, is sustaining the broad-based view the Govt is on the right economic track.

The Govt’s poll ratings pose a problem for the Labour Party going into its annual conference this weekend. The party is unable to admit the possibility economic mis-management in its 9 years in office has exacerbated the country’s current economic plight, so it cannot arrive at a coherent solution on how NZ can extract itself from a future of declining living standards. Until it can do this, the Govt will have virtually a free run. Labour is caught between a necessary but embarrassing climb-down, and ongoing delusion (a conclusion reached by The Economist about Gordon Brown’s Govt in the UK, but applying equally here). NZ Labour’s answer to any particular problem at present is to spend more money. And the public is sick of digging deeper in its own pockets to fund central Govt follies.

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