Prime Minister John Key has asked for a review of the $47 million refurbishment of the Governor-General's residence in Wellington.
And he revealed that he has cancelled the $400,000 budgeted upgrade to the soft furnishings at his own official residence in Wellington, Premier House.
"It is just notappropriate for the time."
Mr Key said he had asked whether all the expenditure on Government House was necessary and provided value for money because such work needed to "reflect economic conditions".
"I received some advice that it may be possible to just slightly trim the contract from the design."
The project, which is expected to take four years, was already under way and was also being carried out by local contractors, he was told.
He had sought the advice because he thought it was a large amount of money.
Former Prime Minister Helen Clark said at the time of the last Budget that the 99-year-old house had had many patch-up jobs and it was time for a proper conservation job.
Asked about flowers in the Beehive and where to draw the line, Mr Key said times were not tough enough to cancel the flowers that arrive at Parliament each Monday for ministerial offices.
"It is not that bad. There has to be a degree of balance and extravagance is clearly inappropriate. But a modest flower arrangement, I think, is still acceptable."
Australia's Governor-General, Quentin Bryce, has cancelled an A$6.5 million renovation of her two residences, in Canberra and Sydney, because of the economic downturn.
The projects had been initiated by her predecessor.
