Government cannot wash it hands of responsibility for franchisees refusing to sign up as outlets for the proposed Kiwibank, says National's Associate Finance spokesman David Carter.

"We have said all along that the Kiwibank proposal is a dog and now we find NZ Post is even being bitten by its own subsidiary - the Books and More franchise group, which says the bank does not stack up economically.

"Kiwibank is an $80 million dollar ego trip gifted to Jim Anderton by Helen Clark and they both must accept responsibility for this failure. But when the venture is beginning to fall over - they are nowhere to be seen.

Mr Carter says it is just not credible for Jim Anderton to try and distance himself from the ridiculous situation of having the Books and More chain - which has 36 stores nationwide and is part owned by NZ Post - turn down Kiwibank for commercial reasons.

"It is absolute rubbish for him to try and weasel out of responsibility by claiming this rejection is purely an operational matter," Mr Carter added.

"Kiwibank is a Labour/Alliance initiative - obviously led by the deputy prime minister - and as more and more problems become apparent it is totally unreasonable for Helen Clark and Jim Anderton to try and stand back and wash their hands of it," Mr Carter concluded

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