Prime Minister John Key says an ACT Party campaign that criticises his achievements is part of the rough and tumble of politics.
The campaign, fronted by Sir Roger Douglas says Mr Key has his head in the sand when it comes to catching up with Australia.
It was created by an former advertising executive John Ansell - the man behind National's Iwi/Kiwi billboards in the 2005 general election.
The second in a series of campaign flyers will be released on Thursday. It coincides with the expected resignation from Parliament of former ACT MP David Garrett.
Mr Key says he is not offended by the campaign. He says politics is 'a contest of ideas'.
Comment by Dougas
Sir Roger says he did not talk to his party leader before releasing the advertising.
Sir Roger told Morning Report he decided as a backbench MP to issue the fliers, as part of an agreed party strategy.
He said the advertising is about party policy and that there was no issue surrounding Rodney Hide's leadership.