Mr Price said asbestos sheets were safe as long as they were not broken, drilled or burnt, creating dust which could be breathed in.
"The whole thing is an over-reaction," he said.
"I think OSH rules have got to the stage where firms are so paranoid, they don't know whether they're Arthur or Martha. The place is a health resort, not a health risk."
Following the initial scare, Top Energy brought in specialists to examine the site and prepare a full report. Their report is still about a week away but Top Energy spokesman Peter Heath said the preliminary findings were that six of the seven buildings contained asbestos.
Two were in such a state of disrepair that surrounding soil was contaminated with asbestos fibres.
Mr Heath said the specialist's initial findings backed up the contractor's advice to immediately shut down the pools until all asbestos was removed and the site was made safe.
Chief executive Russell Shaw said it was "certainly not a false alarm".
A WorkSafe spokeswoman said the agency had visited the site and was working with the company and the Northland District Health Board to make sure a plan was in place for managing any asbestos.
Northland medical officer of health Dr Clair Mills said health board staff had visited the Ngawha pools complex and were awaiting the results of laboratory tests. However, early evidence was that the risk to the public from asbestos exposure was minimal.
The closure of Ngawha Spa does not affect the nearby Waiariki hot pools, which are operated by the Parahirahi C1 Trust and remain open.