No NZ involvement in paying people-smugglers - PM

John Key says he has no knowledge of whether Australian officials paid people-smugglers to turn around a boat of asylum seekers. Photo / Andrew Warner

Prime Minister John Key says New Zealand authorities were not involved in claims Australia paid people smugglers to turn back on a boat and it was unlikely to take any such action itself.

The boat was carrying 65 asylum seekers and ran aground on an Indonesian reef after being turned back.

Australia's Prime Minister Tony Abbott has continued to refuse to confirm or deny the claims by the people smugglers to Indonesia's police that Australian authorities paid them $5000 each to turn back to Indonesia.

Mr Key said the New Zealand's Government was advised of the boat because it was heading to New Zealand. However, he was not aware of whether the payments had taken place and had not asked Mr Abbott about it.

As far as he knew, no other minister had sought further information from Australia either.

"There's nobody on the New Zealand side that I've spoken to that's ever been involved in anything like that."

Asked if New Zealand would ever consider paying people smugglers if they were found in New Zealand waters, he said it was not likely.

"It's just not something we are likely to get engaged in. "It's not something we are practically looking to do or I've had advice we should do."

New Zealand's mass arrivals law, passed in 2013, provides for the processing and holding of asylum seekers in the case of a mass arrival.

He said there were arguments both ways but it was a matter for Australia and he did not expect to raise it with Mr Abbott when they next spoke.

"I don't know whether they've been involved or not involved, but it's a matter for them. On the advice I've had it's certainly nothing either New Zealand is knowledgeable or been involved in."

The United Nations High Commissioner for Refugees issued a statement saying the UN had interviewed the asylum seekers and were told they had seen cash handed over.

The Indonesian Government has also asked Australia for more information and its foreign minister has warned it could encourage people smuggling attempts.

Asked if it risked upsetting regional security, Mr Key said he did not know the details.