The Government may launch legal action against the owners of the stricken Rena ship, in a bid to recoup costs from New Zealand's worst marine environmental disaster.
The financial liability of the ship's owners for dealing with the pollution is capped at about $14 million, so taxpayers will have to pay for any costs above this.
However Key told Newstalk ZB this morning it may be possible to take a case against the ship's owners under the Resource Management Act.
"If gross negligence is found then we can also take further legal action. So there are a couple of options available."
It's understood the the maximum fine under the RMA is $600,000.
Similar accidents overseas have cost hundreds of millions of dollars to clean up.
Meanwhile Key said the public anger towards the disaster was natural and he too would be annoyed if oil had been dumped in his backyard.
"The reality is that if you live down on Papamoa Beach or Motiti Island or whatever it might be, I'd be frustrated too if through no fault of your own a whole lot of oil pollution has been dumped on your playground."
Salvors were to be flown in by helicopter at first light this morning, and it is hoped that what remains of the ship's 1700-tonne fuel load will be pumped out.
The ship's fuel tanks have been capped and are intact and it was believed the leaked oil may have come from the duct keel or aft tank.
"I think everyone's keenly aware of the environmental risks there are to the break-up to the ship," Key said last night.
Asked about reports that the captain was celebrating his birthday when the ship hit the reef, Mr Key said the matter was before the courts.
"All I have said that is whoever is accountable for this and responsible for this has to be held accountable for this accident," he said.
Most of the oil already in the sea is expected to sweep around Motiti Island and into the coastline east of Papamoa.
- NZ HERALD ONLINE