Labour calls on Key to name 'downgrade' source

Published: 1:59PM Tuesday October 11, 2011 Source: ONE News

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Labour is calling on John Key to name the "source" behind a claim he made in Parliament last week.

A privileges complaint will be laid by Labour after John Key claimed Standard & Poor's said if there was a change of Government, another downgrade of New Zealand's credit rating would be more likely.

The credit ratings agency itself has rejected that, saying it does not rate political parties, it rates Governments.

"I might have talked about the importance of the Government maintaining a strong fiscal position in the medium term but I would never have touched on individual parties," Standard & Poor's sovereign rating analyst Kyran Curry told the New Zealand Herald.

It now transpires Key was told about the possible downgrade by someone he is not prepared to name, who had emailed him in September.

Key said he received the email from a person he knows well following a meeting last month, telling him what the credit raters had said.

"By not revealing who is behind the email he has released to media, the Prime Minister is casting doubt on everyone who was at the meeting," Labour leader Phil Goff said.

Key said today he had not misled Parliament.

But Goff said the Prime Minister has "lied to Kiwis" and if the source is credible then he should name them.

"John Key should stop trying to squirm out of it, front up, admit he got it wrong, and say sorry," Goff said today.

"Kiwis would give him some credit if he at least did that. It's not good enough for him to keep ducking and diving and refusing to answer questions about it.

"It is not acceptable behaviour from a Prime Minister."

Key told Fairfax his source was credible. "All I can say is the person sent me the email and I released the email. I'm happy with it."

Standard & Poor's and ratings agency Fitch downgraded NZ from AA+ to AA last month.

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