Labour promises would cost $2bn, govt says

The government is accusing Labour of planning to borrow and spend nearly $2 billion over the next four years, which can't be afforded.

Acting Prime Minister Bill English on Monday took another swipe at Labour's paid parental leave proposals and added the cost of research and development tax credits which the party is promoting.

The government is going to veto Labour's bill which would increase paid parental leave from 14 weeks to six months at a cost of $150 million a year, and says there's no point talking about it until the books are back in surplus in 2014/15.

Mr English says the R&D tax credits Labour leader David Shearer is talking about would cost at least $300 million a year.

"He claims this could be paid from a new capital gains tax but that's not possible as Labour already concedes this would raise little extra revenue in its first few years," he said on Monday.

"Together, these Labour promises alone would amount to almost $2 billion of more debt over a four-year forecast period - Labour has clearly learned nothing from its past extravagance."