Prime Minister John Key has dismissed the New Zealand First policy to set up a government-backed and managed KiwiSaver fund.
New Zealand First leader Winston Peters says the new fund would be offered alongside the private providers, but would have a higher return and a government guarantee of capital.
John Key says guaranteeing just one provider would create a massive problem, as it would remove all risk for its investors in a financial market that does go up and down.
He is not bothered by Mr Peter's claim that the scheme would be a bottom-line for his support in forming a government in 2014.
"He talks in riddles, he doesn't stick to what he says. It's a waste of time having a discussion that this is a bottom line. There are no bottom lines when it comes to Winston Peters.
"He'll do a deal with who he feels like doing with come an election if he's in government. But saying this is a bottom line, and he'll stick to it - it won't be a bottom line the way you write it."
