New Zealand First has accused the government of wasting millions of dollars of tax-payers' money on Wh?nau Ora handouts.

In parliament today Rt Hon Winston Peters called on the prime minister to explain the 'Wh?nau Integration, Innovation and Engagement Fund'.

Mr Key claimed in 2010 that Wh?nau Ora was intended to help families in need. However, Mr Peters revealed in the House today that a successful Wellington business person sought funding for a family reunion.

"The applicant is quoted in an official booklet promoting Wh?nau Ora as saying that he planned to 'reconnect' with his extended family through a series of taxpayer funded hui.

"The booklet is entitled 'Transforming Our Futures' and was released by Te Puni Kokiri, Ministry of Social Development and the Ministry of Health."

Mr Peters said the use of the WIIE Fund to subsidise private functions was an outrageous waste of public money.

"This is money supposed to go to the needy. It would appear that it is instead being squandered on enterprising middle-class families.

"Whanau Ora is just a giant koha fund set up in a separatist system to appease the Maori Party.

"We suggest that the money go for better purposes for the benefit of all New Zealanders," said Mr Peters.