National MP Mark Mitchell has claimed a NZ First MP told him to pull out of a regional development project in Mahurangi and stop questioning Regional Development Minister Shane Jones if he wanted funding for the project.
Mitchell, the MP for Rodney claimed that over the weekend NZ First MP Jenny Marcroft told him the Mahurangi River Restoration Project would be considered for funding from Jones' Provincial Growth Fund "but for that to happen I would have to end my involvement with it as a local MP".
He said Marcroft told him she was speaking on behalf of a minister, but would not say who.
"Ms Marcroft told me this was because the Government was unhappy with me revealing the illegitimate use of Defence Force aircraft by Defence Minister Ron Mark."
"She also said if I ended my involvement and the money was granted, that they did not want National's Regional Economic Development spokesperson Paul Goldsmith asking Shane Jones questions about it in Parliament."
He said it was "rotten politics" and an attempt to use the Fund to silence political opponents.
However, NZ First leader Winston Peters said Mitchell had "misunderstood" the conversation with Marcroft - who had later apologised for it at Peters' direction.
"Ms Marcroft apologised to Mr Mitchell for the misunderstanding in their conversation. After the conversation had got out of hand she consulted with me late on Saturday afternoon and was advised by me to issue an apology," said Peters.
He said Marcroft was not acting under the instruction of a NZ First Minister.
"While Mr Mitchell may have misunderstood her underlying point, she was apologetic over the matter, and conveyed that to him."
He said NZ First did not try to constrain opposition MPs from criticising the Government.
Mitchell included screengrabs of texts in which he and Marcroft agreed to meet at the Orewa Surf Club on Saturday.
A text from Marcroft at 6.10pm that night read "Hi Mark, on reflection I have considered the substance of our conversation to be incorrect and would therefore ask that you kindly disregard it. Thank you for your generosity in this matter." She added that the Mahurangi River Restoration Trust may wish to apply if they wished to pursue their project and it had potential for the region.
Jones said he had not known about Marcroft's alleged actions and was not the minister referred to.
"This is the first I've heard of it. If you're asking me am I monstering anyone over the Growth Fund, absolutely not."
He denied he was sensitive to being questioned over the fund.
"I don't really care what they say about me, what they do against me. It's all just part of the territory."
He said such political arguments did not compromise their ability to put up proposals.
"If there are National MPs promoting proposals just get ready and stand in line like everyone else and go through the bureaucratic system."
Prime Minister Jacinda Ardern was also unaware of it but said applications for the fund would go through the same process regardless of who was advocating for it.
"There is no prerequisite that anyone who is seeking funding needs to be silent on opposition to the Government."
She said some of the projects that had already been funded were supported by National MPs.
Jones' Provincial Growth Fund is a $1 billion a year fund for projects which could improve economic development in the regions but has been attacked by some National MPs as a "slush fund" and "re-election fund".