Speaking to media this afternoon, Housing Minister Phil Twyford – the man in charge of the KiwiBuild policy – said the ad was "clearly sexist."
"I think a lot of people find it offensive."
Some on social media have complained the ad appears as though the man was mansplaining – when a man explains something to a woman in a condescending or patronising way – the KiwiBuild policy to the woman.
Twyford said if he had commissioned that "attack ad" he would be asking for a refund.
He said the barbecue depicted in the ad did not look like much fun.
"I think there would be much more enjoyable barbecues at Judith [Collins'] place."
Minister for Women Julie Anne Genter said National "missed the mark" when it comes to the ad.
"I really doubt that New Zealanders are going to find that it resonates. I can't believe that National's leadership didn't realise how sexist the ad looks."
She said the ad reminded her of the blockbuster movie Anchorman, which she said is a movie all about how sexist things used to be.
"Their ad seems to be a hallmark back to the 1970s."
But National deputy leader Paula Bennett said the ad uses a bit of humour to get the point across that this Government is failing in its KiwiBuild policy.
"I think everyone needs to lighten up and see it as a bit of humour and move on."
She said the ad did not intend any harm and she didn't think any had been done.