America's Cup: A lot of pride in New Zealand - John Key

Prime Minister John Key says Team New Zealand's loss to Oracle in San Francisco today was "gut wrenching" but he believed there would be a lot of pride in New Zealand about the way it had conducted itself.

"I think there'll be an awful lot of New Zealanders who were sitting there with their heads in their hands, imagining a 9-8 result had gone the other way or we had managed to take the Cup a lot earlier on."

"I just really feel for the team. They've worked not just for weeks, not just for months, but for years on this campaign. That Oracle syndicate has got an enormous amount of money behind it and we're a little country a long way away. We happen to be very good at sailing but we are really up against a big cheque book."

He said decisions were yet to be held about whether the Government would put in funds to mount another campaign or to try to ensure Team NZ could retain key people.

However, he indicated it was likely, and hoped to discuss whether another campaign was possible.

"It's too early to have those discussions today. [Team NZ] I am sure will want to regroup, think about what their next steps are and we will want to sit down and have a discussion with them. But you'd have to say in the course of the last few weeks, the country has been gripped by what it's seen and in terms of New Zealand getting profile, it's really got a great deal of profile during both the Louis Vuitton and the America's Cup."

He believed the $36 million given to Team NZ by the Government was well spent. However it was not just about what the Government was willing to do.

"There's a lot of things you have to consider before you put taxpayers' money on the line."

Although many New Zealanders loved sport, he accepted that there were those who didn't believe government money should be used for sport events such as upgrading Eden Park for the Rugby World Cup, or co-hosting the Cricket World Cup.

However he said they did create opportunities, and if New Zealand did win the Cup and brought it back it would pay off.

"When you put it in the context of that, sometimes the Government putting some money on the line doesn't seem so bad. But New Zealanders work hard to pay their taxes and they expect the Government to be serious and careful about the way they spend their money."

He said congratulations also had to go to the Americans.

"Frankly, the American boat went faster today and there's probably not a lot New Zealand could actually do about that. We've run a big campaign, it's been a long campaign and I think for the team it will be a tough sort of pill to swallow. But I'm personally very proud of them. I think they've showed New Zealand on a world stage what we're capable of, and that we have some great technology and great people. But it just wasn't enough to get us ourselves that last lurch over the line."

Bugger. #AmericasCup

Mr Key tweeted "bugger" straight after the loss, which he had watched with wife Bronagh and his staff after cancelling a meeting with Malta so he could watch it.

"The race sort of finished and I just looked at Bronagh and said 'bugger'. We thought that probably summed it up."

His press secretary had sent the tweet for him on his account, Mr Key said.

He was hoping to reschedule the meeting with Malta.