"I am surprised at how quickly and easily Winston Peters has abandoned his commitment to individual accounts being an essential aspect of any Government superannuation fund," National's Finance spokesman Bill English said today.

"For years now Winston has preached the essential requirement that the money in any super fund should be in a person's name so that they know it is theirs. Yet after round one of his discussions with Dr Cullen, Winston Peters has thrown in the towel.

"Forget any grand rhetoric from Mr Peters. He knows there is now no realistic expectation that the money in Dr Cullen's super fund will be divided into individual funds. Winston Peters has given away his strongly held ethical stance in order to be good mates with Labour.

"The issue of the super fund will affect New Zealanders for decades to come. As such it is far too important to be decided by a backroom deal between the minority Government and a media-attention starved Winston Peters.

"Dr Cullen arrogantly presented his proposal to other parties as a fait accompli with no room for input or rational discussion. That 'like it or lump it' approach showed clearly how the scheme is driven by the politics and egos of Labour. Mr Peters has today decided to dance to Dr Cullen's tune.

"National continues to weigh up the scheme alongside alternative possibilities and will reach a decision when the facts are fully explored. That stands in sharp contrast to New Zealand First which has today taken the politically expedient course of bailing out a scheme which Winston Peters himself acknowledges is flawed," Bill English said.