Labour launched an attack on National leader John Key today, accusing him of personally profiting from the original sale of the railways 18 years ago.
The attack was made by Helen Clark under the protection of Parliamentary privilege, but the attack backfired, and now National is demanding an apology.
The Prime Minister has already revealed the shiny new face of KiwiRail, and today she jumped tracks accusing Mr Key of supporting the sale of Tranz Rail to Toll in 2003, because he stood to personally gain from it.
"Mr Key, as associate transport spokesperson, owning shares in Tranz Rail at the time, which he never disclosed, said publicly that shareholders were telling him they supported Toll's offer for Tranz Rail over the Government's," Clark said.
"Well he would, wouldn't he?"
The tactic drew immediate criticism.
"She's actually taken the trouble to research the various shareholdings of Mr John Key, but actually doesn't know the policy and the cost to New Zealanders," replied ACT's Rodney Hide.
Mr Key was left scrambling for a comeback.
"She has no idea what premium the Crown paid to Toll Holdings, no idea how the rolling stock will be paid for or how much it's going to cost. Actually when it comes to it, she has no idea."
Out of steam, Mr Key left the debating chamber, but came back to read a personal statement saying the Prime Minister was wrong. He had sold the shares before passing comment on the 2003 sale.
"Can I assure her that neither I, nor my family trust, was an owner of shares in Tranz Rail at that time, and she has misled the House."
Miss Clark made no comment, taking the back route out of Parliament. Through a spokesman she says she accepts Mr Key's word. He now wants her to say sorry.
"Sorry would be nice, but I won't hold my breath," says Mr Key.
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