Wellington, March 8 NZPA - Prime Minister John Key rejects criticism that he was focusing on issues like the honours system when the Government should be concentrating on the financial crisis.

Mr Key yesterday announced the return of knighthoods. In 2000 the then Labour government dropped titles from the top levels of the honours system, but from June they will be restored to them both -- Knight and Dame Grand Companion (GNZM) and Knight and Dame Companion (KNZM/DNZM).

Knight and Dame titles will replace the appointment of Principal and Distinguished Companion of the order which were instituted in May 2000.

The 85 New Zealanders who were given honours which used to come with a title will now be given the opportunity to accept the title of Knight or Dame.

They will have until June to decide whether they want to accept the title.

The Green Party disagrees with the move but also wondered why such decisions were being made now.

"We're surprised at the priority this topic has received when the country faces an economic and environmental crisis," Green Party co-leader Jeanette Fitzsimons said.

Mr Key said the Government was focusing on the economy.

"We're concentrating hugely on the economy ... I actually happen to think celebrating success is part of an economy which is strong actually and which would take you out of an recession, because you are able to congratulate and celebrate some things beyond the gloom and doom of the recession," he said on Newstalk ZB this morning.

Mr Key said Governments could not be "mono-focused" and could deal with more than one issue at a time.

He did not know if the move would be popular or not but believed the change added to the celebration of achievement and service that honours recognised.

There was no reason to wait.

"My feeling ... was that if we are going to do it we should do it now for the first Queen's Birthday list in June."

He had not changed his view that New Zealand would eventually become a republic.

When pressed about whether he would become a knight, Mr Key said: "If I'm offered one I'd take it -- I believe in them."

Mr Key said of those eligible to pick up the backdated title that most would.

Among those who can take up the knew titles are: Lloyd Geering, Ngatata Love, Eddie Durie, Peter Gluckman, Colin Meads, Stephen Tindall, Margaret Shields and Jenny Shipley.

Another person who will be offered the title of Dame is former attorney-general and speaker Margaret Wilson, who helped scrap the titles.

Views of some of those included:

* Distinguished Companion, former long-serving New Zealand Netball coach Lois Muir said she would consider changing.

Her late husband was ill when she received her honour; "He was always disappointed I wasn't called a Dame, so it's one of those things.

"I certainly will consider it, but it's nice to have the choice."

* Distinguished Companion and Olympic gold medallist Peter Snell was expected to become Sir Peter.

* Distinguished Companion All Black Colin Meads, was unsure.

"I still live in Te Kuiti, and all my mates around here might give me a hard time."

* Distinguished Companion and founding director of the Liggins Institute Professor Peter Gluckman, one of New Zealand's best known scientists, said a title was of great value in terms of gaining recognition when working overseas.

* Principal Companion Professor Paul Callaghan, director of Victoria University's School of Chemical and Physical Sciences, said it was personal decision whether or not to pick up the title and he'd think on it.

* Maori academic and Distinguished Companion Dr Ranginui Walker said he had previously been scathing of knighthoods because of the wealthy businessmen who were getting them.

"I didn't want to be in the same boat as Sir Michael Fay and Sir Roger Douglas. I felt that the knighthood system had been rather denigrated, or degraded."

But he said he had softened his stance, and had not ruled out upgrading his honour to a Sir.

"Very often they get upgraded and get number one service, so that's one of the perks that goes with knighthoods, I guess," Dr Walker said.

* Author Lynley Dodd told The Dominion Post she was too old to change her ways now and fellow writer Patricia Grace said she preferred her honour the way it stood.

The Labour Party said it was a move backward.

"We've been moving away from the British colonial system to one that reflects our independence and values ... I think many people that bringing back something that has the overtones of the British class system really isn't appropriate for 21st New Zealand," party leader Phil Goff said on Newstalk ZB this morning.

He said many people's ancestors came to New Zealand to escape the British class system.

Ms Fitzsimons said New Zealand had outgrown the old system.

"We should celebrate outstanding New Zealanders as New Zealanders rather than as part of an outgrown relationship with the British Empire," she said.

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