When challenged by the Bay of Plenty Times whether the Government would take a stance, Mr Key said the decision did not lie with the Government but instead with local authorities.
"In the end the appropriate place for that decision to be made is actually by local people and representatives, they are the Regional Council, and if people don't agree with the decision the Regional Council makes then ultimately the Environment Court is the place to test that.
Despite sympathising with local businesses, Mr Key also put the issue of compensation for local businesses on other authorities.
"Ultimately these things are never easy. It's a great tragedy in terms of the Rena and the impact it had for some of those businesses...
"It's really a matter for the insurers of the Rena and the individual companies."
"In reality the Rena is an issue that had a substantial impact on the area at the time but I would have thought for the most part people have moved on from that."