Rodney Hide. File photo / Mark Mitchell

Rodney Hide. File photo / Mark Mitchell

Rodney Hide has apologised for criticising John Key's performance, saying it was "light-hearted banter" taken out of context and that he has the highest respect for Mr Key.

At a breakfast meeting yesterday, the ACT Leader, who is a minister outside Cabinet, said Mr Key "doesn't do anything" and was highly regarded, while "ACT did everything and we are hated", The Press reported.

He also talked about how much money could be saved by making 700 bureaucrats redundant through the super city changes.

This morning he issued a release saying: "I would like to apologise to the Prime Minister and my Cabinet colleagues for the comments reported in the media from a breakfast function in Christchurch.

"This was light-hearted banter at an Act Party function and taken out of context," Mr Hide said.

"The National Party clearly has substantial political support, and a strong mandate from New Zealanders for what is a wide-ranging and active programme of reform under way, much of it dealing with the problems it has inherited from the previous administration.

"I have the highest respect for the Prime Minister and I enjoy and excellent working relationship with him and his Cabinet colleagues. I spoke with the Prime Minister shortly after hearing that my comments were to be reported and apologised to him for that."

Deputy Prime Minister Bill English this morning said he strongly disagreed with the comments about the Prime Minister.

"I talk with and work with John Key every day and he is the hardest working minister in the Cabinet," he told Radio New Zealand.

Mr English said he thought Mr Hide was also a good worker but with a small party he was seeking attention.

"He makes a very useful contribution to the Cabinet and, if he's not aware of it, there's a lot of hard working ministers there really pushing their work through because I get to see it all as Minister of Finance."

Mr English said Mr Hide came to Cabinet once about every three weeks.

"The Cabinet is dealing with a much wider workload than just Rodney's work."

Mr Hide made the comments in Christchurch during a $45-a-head breakfast function yesterday.

The breakfast was already controversial, labelled a rort by Labour, as people were being charged to hear Mr Hide talk about issues to do with local government - which is Mr Hide's ministerial portfolio - rather than hear him speak as party leader.