Key gives Labour a new year present

Prime Minister John Key has given Labour an unexpected New Year present by announcing the election date, but party leader Phil Goff says it does not mean the government is confident of winning on November 26.

Mr Key's announcement yesterday was an unprecedented break with the historic obsession governments have about keeping the date secret for as long as they can to keep their opponents guessing and make it difficult for them to nail down campaign plans.

He said he didn't want speculation about it to be a detraction during the Rugby World Cup, which starts on September 9 and ends on October 23.

"I don't think it's about confidence at all," Mr Goff told reporters.

"That's the logical date to set, it's the traditional time for an election."

Mr Goff thought people would focus on the tournament in October.

"We'll win that one, then they'll be focused on the election and Labour's confident we'll win that," he said.

Mr Key and Mr Goff said there would be a clear choice for voters.

National would campaign on its record of responsible economic management that was getting debt under control and creating the right incentives for growth, Mr Key said.

Mr Goff said Labour would campaign on the issues that affected people the most.

"We know that people are worried about the soaring cost of living with prices rising much faster than wages. That will be a key election issue," he said.

Mr Key's other surprise announcement was that he would not have New Zealand First in his government if he wins the election.

He said the same thing before the 2008 election, but not until the campaign had started.

"I want to lead a positive and aspirational government that is focused on the issues that matter and I don't see a place for a Winston Peters-led New Zealand First in a government that I lead," he said.

He admitted that if Mr Peters held the balance of power it would be a Phil Goff-led Labour government.

Mr Peters said National was scared NZ First would stop it selling state-owned assets.

"He knows we will not let National go down that path ever again. He knows we will not let National give away the foreshore and seabed," Mr Peters said.

"We will stop National selling our prime dairy land because we are very dependent on the dairy industry for our survival in a scary international financial environment."

NZ First is just short of the 5 percent of the party vote it needed to get into Parliament in 2008, and is currently running at between 2 percent and 3 percent in most polls.