Changes to paid parental leave are past the first hurdle, but the Government's warning it will use its veto if it gets much further.
Labour's bill to increase the leave to 26 weeks scraped through its first reading in Parliament last night.
LISTEN Labour MP Sue Moroney speaks with Mike Hosking
Finance Minister Bill English says if it goes much further, they'll use their financial veto, as it's too expensive.
"There are occasions where all the parties can outvote the major party. In this case we think it's lower priority policy," English said. Â
"Ours is on broadening eligibility so that the large of women who don't have permanent full time job can become eligible, and that's our priority and we're not going to spend money on both of them."
Labour MP Sue Moroney rubbished the claims the extension is unaffordable.
"The Government's excuse lacks credibility when they are prepared to spend $26 million on a flag referendum and $11 million on their shady Saudi sheep deal."
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