Maori Affairs Minister Pita Sharples is entitled to set aside $3 million for Maori Television's bid to obtain rights to screen Rugby World Cup games, Prime Minister John Key says.
However, Mr Key has set expectations by saying he wanted everyone to be able to see the 16 free-to-air games.
The remainder of the games would be aired on pay-TV.
Mr Key said he did not know the contents of the Maori Television (MTS) bid, or whether it would be successful.
Dr Sharples authorised the $3m to come out of TPK (Te Puni Kokiri, the Ministry for Maori Development) funds set aside to foster Maori development.
Mr Key said he was entitled to do that because it was not additional expenditure.
It may have been helpful if he had discussed it with Cabinet or Finance Minister Bill English, Mr Key said.
"My only thing around that would be that if the bid is successful, then it would be my expectation that all New Zealanders would have an opportunity on a free-to-view basis (to see the games).
"I expect my expectations to be met."
MTS would have to prove it could allow all New Zealanders access to the games.
MTS broadcasts to about 85 percent of the country.
"If Maori Television don't have that capacity then they'd better work out a way (to deliver)," Mr Key said.
He would be unimpressed if MTS won the bid because they offered more money, but then could not deliver countrywide.
Sky had won broadcast rights for the tournament, to produce coverage of all 48 matches but there were local broadcast rights for up to 16 matches, including All Black pool games, the quarterfinals, semifinals and the final.
Bids closed last Friday with a decision expected mid-month.
Dr Sharples said MTS and TPK were right to seize the opportunity to bid for the rights.
"The bid creates a unique platform to promote Maori development for the benefit of the whole country," he said.
"This bid creates huge opportunities to promote and profile Maori businesses across the spectrum, for example, and new jobs will be created. My Economic Development Task Force is certainly interested."