The Labour Party claims an $8 million contract for the Rugby World Cup's opening and closing ceremonies is to be awarded to the Australian arm of an international company.
It says at least two well-placed sources have told party members Spectak Productions, which has been responsible for Olympic and Commonwealth Games events, will be spearheading the operation from its Sydney branch.
Both Rugby World Cup organisers and Spectak Productions deny the company has got the contract.
Rugby New Zealand 2011says tender negotiations are under way and a final decision is not expected until next month.
However, Labour's spokesperson for Auckland issues Phil Twyford says it's an appalling decision on behalf of the Rugby World Cup minister Murray McCully.
He says it's embarrassing an Australian firm has been called on, adding there are a number of New Zealand companies who are more than capable of handling the event.
"We have companies in New Zealand who are extremely able, experienced and qualified in running these events and it appears they have been passed over in favour of an Australian company."