Labour Deputy Leader Michael Cullen says the increasing desperation of the National Party's campaign is shown by the fact they've now resorted to outright lies in their advertising.

"Today's newspapers are carrying an advertisement which claims everyone working full-time will pay more tax under Labour.

"That is untrue. The only tax increase Labour plans to introduce is a 39c tax step on incomes over $60,000. This will affect only the top 5 percent of taxpayers.

"But the lies don't stop there. The ad also purports to quote something I said on tax. No such statement was ever made, nor does it represent my views.

"Labour will undertake a long-term structural review of the tax system. But, as National well knows, no significant recommendations arising out of that review will be enacted in the next three year term of Parliament. That includes every item mentioned in the advertisement.

"National is trying to hide their leader, they're scared of their coalition partner. Now in desperation, they're back to the oldest Tory trick - tell lies and hope someone believes them.

"No wonder Mr English has lost every debate so far. The truth is so damning for National. Mr English would do better to start planning how he is going to restore National's credibility as the incoming Leader of the Opposition," Dr Cullen said.

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