The Prime Minister says the head of his department got it wrong in his behaviour at last week's Roger Sutton press conference.

Last Wednesday John Key saw Andrew Kibblewhite's presence at the now controversial announcement - where he and Roger Sutton exchanged a hug - as appropriate

"He went down because there could would well have been questions about CERA moving under the wing of the Department of Prime Minister and Cabinet," he said then.

But, now Mr Key appears more critical of the man who heads the Department of Prime Minister and Cabinet

"My brief look at that footage was that Roger actually embraced Andrew," he said.

"Look, in the end, it wasn't a good look. It shouldn't have happened."