ACT New Zealand MP and former Minister of Broadcasting Sir Roger Douglas today slammed John Key's unprecedented interference in TVNZ's bid for the Rugby World Cup screening rights as bordering on Muldoonism.

"Not since the days of Muldoon has a Prime Minister acted in such a heavy handed manner with flagrant disregard for the proper principles of governance," Sir Roger said.

"This whole issue, while minor in nature, has major implications. Questions need to be asked of all the players as to how and why Prime Minister John Key was able to exert his influence in this manner.

"Is this the approach he intends to take - to interfere in the activities of a company incorporated under the Companies Act 1993? Did he talk to the shareholding Ministers, and were they in agreement? Did the Board meet, and if so, did Mr Key instruct the Board how to withdraw their bid? Did he talk to the CEO?

"Answers to these questions are needed to ensure that political interference in the decisions of publicly owned companies will not happen again, and that independence is maintained. It is worrying that a broadcaster can be so easily bossed around by a Prime Minister. Did Mr Key know the financial implications of his actions, or even get advice as to whether his actions were legal from Crown Law?

"The people of New Zealand need to know if this is just a one off, or if he intends to act like some kind of spoilt school boy every time he gets into difficulty.

"When things are difficult, as they inevitably are in Government, we need a Prime Minister who is calm, even-handed, and shows a high level of commonsense. Unfortunately, Mr Key hasn't demonstrated any of those attributes on this occasion" Sir Roger said.

ENDS