Labour's congress will chart campaign strategy

Labour will work on its election campaign strategy and prepare its candidates for battle at a congress in Wellington this weekend.

Party leader Phil Goff said the congress, which replaces the annual conference in election years, would discuss the policies Labour will be offering to voters as it tries to end National's rule after one term.

"Economic and social policy will be at the top of the agenda," he told NZPA.

"It's also focused on a lot of organisational detail, and it will be a learning experience for new candidates and activists."

Mr Goff said his speech on Sunday would be a critique of New Zealand's situation, the reasons behind the record $16.7 billion deficit and the Government's failure to get the economy moving.

"It will focus on the issues we think are important through to the election -- the cost of living, employment, asset sales, the sale of our land to overseas buyers and giving our children the best opportunities in life," he said.

"It will look at the concept of fairness, what needs to be done to give people a fair go, pay their fair share, and ensure we don't have increasing inequality and lack of opportunity."

Mr Goff said in incoming Labour government would have the deficit to deal with and borrowing that was running at $380 million a week.

"It's not going to be a case of going in and throwing money at issues," he said.

"It's about how we can turn that around, it's about accepting it's not a case of slash and burn or raising taxes. "It's actually about getting the economy moving to generate growth, higher incomes, employment and extre revenue."

Labour is more than 20 points behind National in most opinion polls, which show the Government easily winning a second term on November 26.

But Labour is still to reveal its core economic and social policies, and yesterday's budget gives it new areas of discontent which it could turn to its advantage.

"The party is upbeat and there's a real belief that Labour can win this election," Mr Goff said.

"It is starting from behind but the gap isn't too great to close. Some polls suggest the gap is going to be much less than people might imagine."

Mr Goff said having Don Brash leading the ACT Party could help Labour.

"I think middle New Zealand will be worried about National campaigning in a way that doesn't frighten the horses, and then use a confidence and supply agreement with ACT as a pretext for moving hard to the right," he said.

"John Key will be led into more radically right-wing policies by his former boss than Rodney Hide was ever capable of doing.

"It has to be remembered that this happened (Dr Brash's takeover) with the concurrence of people within National who welcomed the fact he would be there, saying things National really believes in but is too scared to say for itself."

About 500 delegates, candidates and party organisers are expected to attend the congress in Wellington's Town Hall.

Most of it is behind closed doors, because campaign strategy and policies which haven't been released will be under discussion.

Party president Moira Coatsworth and deputy leader Annette King will speak tomorrow, Council of Trade Unions leader Helen Kelly and Mr Goff on Sunday.