Tax cuts off agenda despite economy

Insiders say when Clark gives the traditional leader's address when Parliament resumes on Tuesday, she will be taking a "steady as she goes" approach.

Clark's speech will link the strongly performing economy to the government's cautious economic management - and will continue to reject opposition claims that economic boom times mean the government can afford tax cuts.

She will also stress the relationship between a healthy economy and social policy, focusing on the importance of a healthy, educated and skilled workforce and improving living standards and work-life balance (through measures such as generous holiday provisions, childcare and working conditions) to a robust economy.

Clark is also expected to emphasise Labour's push on boosting productivity and building international trade relationships to underpin sustainable economic growth.

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