However, he undertook to raise their concern with Pike River Coal receiver John Fisk, of PricewaterhouseCoopers.
Although the Prime Minister was not in a position to directly alter the statutory manager's position, Mr Smith said he was sure he could ``broker'' with the right people.
Speaking outside the meeting, Mr Key told the media the issue of re-entering the mine was not a money matter.
"It is an issue of safety and a credible re-entry plan.
"It's not the money that's holding the plan back. The statutory manager and the Department of Labour have to agree that it is safe for Mines Rescue. If it is not safe and it's entered 10 more people could die, then people would be questioning again.
"It would be unfair and stupid to go in if it wasn't safe.''
Mr Key reassured the families that he was "totally committed'' to the body recovery.
He said every mine was unique: "With some mines that explode, re-entry is possible, and in others it has never been possible. We obviously hope we can and will re-enter Pike - but I have never guaranteed this.''