Prime Minister John Key says the Government won't exercise its financial veto to stop a bill Mondayising Anzac Day and Waitangi Day when they fall on a weekend.



The bill, sponsored by Labour MP David Clark, looks set to pass when it gets its final reading later this year. It gets its crucial second reading vote tomorrow and Clark says it has enough votes to pass.



National had rejected the Holidays (Full Recognition of Waitangi Day and Anzac Day) Amendment Bill.



Speaking from Brazil this morning, Prime Minister John Key said National would not exercise its power to veto the bill but had decided not to support the legislation through its final stages.

The "lineball call" decision was made at a caucus meeting three weeks ago.



"They seem to have the numbers so it's my expectation that it will pass," he said.

"National won't vote for it - we've had that decision in our caucus... we thought it was a bit disingenious to change our vote at the last moment... there was a mixture of views in the caucus but in the end we took the view that it was a better to stick with the status quo and I think people would see through it if we changed our mind now."



A move to veto a bill with majority parliamentary support would have sparked heated debate about the balance of power between the executive and Parliament.



The Department of Labour estimated "Mondayising" Waitangi and Anzac days would impose an estimated $200 million drag on the economy per day. The issue won't arise until 2015.



The Government can use its veto powers when it considers legislation carries a significant financial cost.



Finance Minister Bill English seemed uncertain today about whether Cabinet had considered a veto but said it had probably considered the issue briefly.



There would be some cost to the Government as a large employer but it would not use its veto.



Key conceded the cost would largely be borne by the private sector and wasn't a "huge" bill for the Government.



"It's a hard cost to quantify because there is a whole lot of factors you have to take into account...we pretty much reserve the veto for Government expenditure."



Key said National had not put pressure on coalition partner Peter Dunne to change his vote. Labour got the bill to select committee with support from his United Future party and the Maori party.



ACT's John Banks will oppose the bill. It's not yet clear how independent MP Brendan Horan will vote.



"The world is not going to cave through. At the end of it, it will please some people... it's kind of six to one half a dozen to the other," Key added.



Clark said the numbers the Government had relied on for the cost of the bill were so full of holes they were an embarrassment for it.



"They know very well that there is no significant financial impact associated with this bill."



Any cost to business would be minimal and that was why a survey found 79 per cent of businesses were either in favour or neutral towards it.



Clark said he expected the bill to become law before the end of the year.



"That will give plenty of time for us ... and employers to adjust for any small adjustments they had to make."



He said it would actually be smoother for business because they would not have to make changes.



Clark said Key should "stop wriggling around like a fish on a hook" and come out and vote for the bill.

CRAIG SIMCOX DAVID CLARK: Introduced the member's bill.

* This story has been corrected twice. Earlier it erroneously stated the bill would be debated in Parliament tonight and passed into law. It will have its second reading in Parliament tomorrow.

