Election 2011: Labour to borrow more, keep assets

National's John Key (L) and Labour's Phil Goff. Photos / APN

Labour leader Phil Goff has promised to show New Zealand the money tomorrow and reveal his party's fiscal plan which will involve borrowing $2.6 billion more than National over three years.

Last night at a lively leaders debate in Christchurch, Prime Minister John Key challenged Mr Goff to "show me the money" and reveal Labour's numbers which National has estimated will involve $17 billion in additional debt over four years.

On the campaign trail in Nelson today, as official figures showed the unemployment rate edging higher, Mr Goff said Labour would give its full figures tomorrow.

"Over the next three years the Government has projected it will be borrowing about 13 billion. Under our projections we'd probably be borrowing about $15.6 billion. But we'd keep our assets," Mr Goff said.

"We'll be showing New Zealand the money tomorrow. John Key needs to show New Zealand the jobs at the same time."

Goff not being honest - Key

This morning Mr Key took a swipe at Labour's economic policy, saying Kiwis should be "very worried" about the answers from Goff on Labour's spending, during last night's debate.

Goff appeared to come unstuck during constant questioning about Labour's bid to refocus the economy via capital gains tax and savings.

Labour need to find around $14b to return the Crown's books to surplus by 2014/2015, a goal Mr Goff says its economic program can achieve.

"We are now three weeks and a couple of days from the election. There are actually no costings from Labour," Mr Key said.

"Phil Goff can't keep going around saying he's going to balance the books and pay off debt and claim the moral high ground with things like the capital gains tax and raising the age of super when we know through our own costings that he's just spending a lot more money.

"He's actually not being honest with NZers about the cost. If they are going to balance the books, a big new tax must be coming from Labour."

Asked if Labour was lying, Mr Key said: "that's for them to decide".

He said Labour would borrow more and "fudge" the numbers and have "magical dividends" when they finally released their numbers.