Michael Cullen’s appointment to the board of New Zealand Post has one major political impact – it completely undercuts the basis of Labour’s whole political attack for the past 18 months.

That attack has been based on one word: privatisation.

Labour believed its dog whistling over the issue during the campaign could swing the election – surveys having shown privatisation being less popular with voters than dumping the anti-nuclear policy.

The fact voters didn’t buy the fear campaign during the election has not stopped Labour from using that attack – in fact, quite the opposite.

We’ve seen it over accident compensation, we’ve seen it over the warnings to state owned enterprises they need to keep paying dividends to the government: we’ve even seen it over the report on Auckland’s Mega City (and that report was from a Royal Commission set up by Labour).

In short, Labour’s political strategy still appears based on its over-thumbed copies of The Hollow Men.

Dr Cullen’s acceptance of the job at Kiwibank completely undercuts all that.

“I think they have made clear their position in relation to privatisation of SOEs … I would find it difficult to accept a role with an SOE if I thought I was going to be privatised,” he said at yesterday’s press conference.

“I have no reason to believe that is going to happen in this parliamentary term.”

In other words, the line he and his party have been pushing for the past 18 months or more is utter balderdash.

It will be interesting to see how Dr Cullen’s appointment goes down with Labour faithful. There are still National Party people who resent Jim Bolger’s appointment to the same board – and Mr Bolger’s appointment did not, as this one does, make an utter nonsense of the party’s political strategy.

The appointment will certainly not go down well in National Party heartland, where Dr Cullen is perhaps resented even more than Helen Clark. In two and half years' time though those voters will have other things on their minds.