New Zealand First leader Winston Peters' plan to sell Kiwibank is "erratic and confusing" and would risk destroying the bank, Progressives leader Jim Anderton says.

Winston Peters has come up with a startling solution to high interest rates and the huge profits reaped by the country's foreign-owned banks.

New Zealand First leader Winston Peters has put forward a radical proposal to float shares in Kiwibank and channel all the Government's $55 billion a year business through it.

Prime Minister Helen Clark says polls are closer than they appear once support partners were included in the mix. Last night's One News Colmar Brunton Poll of 1003 voters showed a slightly narrower gap between the two main parties.

By Peter Wilson, NZPA Political Editor

As the campaign enters its second week Labour is under pressure to start cutting into National's strong lead in the opinion polls.

New Zealand First leader Winston Peters refused to appear on Sky News' Campaign 08 because he objected to the host Bill Ralston. Ralston told the New Zealand Herald that NZ First staffer Frank Perry told him Mr Peters would not appear because "he's suing you".

By Peter Wilson, NZPA Political Editor As the campaign enters its second week Labour is under pressure to start cutting into National's strong lead in the opinion polls.

New Zealand First leader Winston Peters says a rewrite of the Reserve Bank Act would be a bottom line for his party in any post-election negotiations to form a government. "Exorbitant interest rates are destroying small businesses and threatening home ownership," he said today.

Minor parties took up the slack in the election campaign today as Labour and National wound down for the weekend.

The Green Party would lift the number of refugees allowed into New Zealand each year by a third. At present 750 refugees are allowed into the country each year, but the Greens' immigration policy, released today, proposes raising that to 1000 by 2010.