Wellington  - New Zealand's newly elected conservative government promised workers Tuesday it would cut their income taxes in each of the next three years, but immediately sparked a row with labour unions over tough new employment laws.

As the new parliament was officially opened with traditional pomp and ceremony, the National Party, which ended nine years of rule by a social democrat-led government in last month's elections, moved to rush radical new policies into law before Christmas.

It had already pledged to pass legislation before Christmas that will allow tax cuts to take effect on April 1, but a similarly rushed move to make it easier for small companies to sack unsatisfactory workers surprised the Council of Trade Unions (CTU), which dubbed it outrageous.

Prime Minister John Key said allowing companies employing under 20 staff to sack unsatisfactory workers in their first 90 days on the job would help boost employment. Under existing law, such workers cannot be dismissed without the threat of a legal challenge.

The change has long been National Party policy but it was not included in the priority measures which include tax cuts that Key promised to put into action within the first
100 days of his government.

"Over 700,000 New Zealanders start a new job each year and many of those are in small firms," said CTU president Helen Kelly. "Every worker can be affected at some time in their working lives."

A single-minded concentration on economic growth was the main feature of the National Party's policy programme outlined in a speech prepared by the new Prime Minister but read, according to tradition, by the Governor-General, Anand Satyanand, the representative of British Queen Elizabeth, who is the country's head of state.

Renouncing the socialist policies of the ousted Labour-led government, which right-wing critics accused of running a "nanny state," Satyanand said, "In pursuing this goal of economic growth, my government will be guided by the principle of individual freedom and a belief in the capacity and right of individuals to shape and improve their own lives.

"So my government will not seek to involve itself in decisions that are best made by New Zealanders within their own homes and their own communities," he said.

"The new government's vision is not to dictate the way in which New Zealanders should live their lives, but instead to ensure they have the opportunities they need to make the best choices for themselves."

Noting that the economy had been in recession this year and economic growth in 2009 was forecast to be low, the government predicted it would run an operating deficit for some years to come.

As well as tax cuts, the government promised an accelerated infrastructure programme, including new roads, schools, public transport projects, and an ultra-fast broadband network across the country, designed to counter rising unemployment and stimulate the economy.

It promised not to cut government spending and social welfare but said the number of bureaucrats would be frozen and a transitional relief package introduced to help workers made redundant in the current economic crisis.

The National Party-led government, which controls 69 seats in the 122-member parliament, also pledged to act on campaign law- and- order promises, including more police and tougher bail and parole provisions for violent criminals.

"The driving goal of the new government will be to grow the New Zealand economy in order to deliver greater prosperity, security and opportunities to all New Zealanders," the governor-general said. (dpa)