NZ govt claws back support, but still trails badly

WELLINGTON, July 21 (Reuters) - New Zealand's ruling centre-left Labour Party has clawed back support, according to a new group of opinion polls, but still trails the main opposition party by a large margin four months ahead of the next election.

The minority Labour-led coalition government, led by Helen Clark, narrowed the gap with the centre-right National Party in each of three opinion polls published over the weekend.

Polls released by the two main television networks -- TVNZ and TV3 -- and the Fairfax newspaper group had Labour between 2 and 9 percentage points behind, with its support rising to 35 percent in all three polls.

Support for National, led by former merchant banker John Key, eased by up to 3 percentage points.

Labour leader and Prime Minister Helen Clark called the poll results encouraging and positive.

"I think we have seen the opposition more on the backfoot in the last month or so," she told TVNZ on Monday.

"They've started to come out with policy that is very unpopular," she said, referring to a National plan to allow private insurers to compete with the state in providing workplace insurance.

A Reuters poll of the five main opinion polls has National steady on a median 52 percent backing and Labour improving to 35 percent from 32 percent.

The next general election must be held by mid-November, with Clark expected to leave it as late as possible to give her government the most time to improve its support.