UPDATED 1.45pm: Labour is unimpressed with the government's pledge to build seven new schools.

John Key has announced $244 million is going on the new schools, as well as upgrading some others.

John Key made the announcement during a pre-Budget speech to a Business New Zealand lunch in Wellington.

It was put to the Prime Minister that new schools are simply responding to population growth and the Government's got to build them anyway.

"You could also add more classrooms in certain places and you can do all sorts of things, but yup the government needs to build infrastructure and we're building modern infrastructure and we're wiring it up."

But Labour leader Andrew Little says the government's just trying to dress up business as usual.

"That's a reheated announcement, which is simply about doing what the government is expected to do and that's keep pace with the growth of population."

PPTA President Angela Roberts also says the Government's re-announcing commitments it's already made.

She says at least two of the new schools, such as Rototuna Senior High School in Hamilton, are not new at all.

"It got a $40.2 million price tag. David Bennett said before the election the funding had been secured."

New Zealand Principals Federation president Denise Torrey also says it's good news, but old news.

She says it might be new money which Key has assigned from the proceeds of asset sales, but these schools have been planned for a while.

Torrey says work is already well underway on some of the supposed new schools.