The politicians knew best ... when it came to lending almost 10 million dollars to a hi-tech dairy company, Westland Milk Products

Officials advised against it.

Political editor Barry Soper says the money came from the Provincial Growth Fund late last year - but papers released under the official Information Act show Treasury advised against it.

Regional Development Minister Shane Jones lauded the company when making the loan, saying it was an investment in the West Coast.

However, Treasury said the Government was acting as a lender of last resort after the company couldn't get a bank loan on acceptable terms.

Officials said further consideration should be given to the loan, but Jones decided otherwise.