Mr Bollard yesterday told TV One's Q&A programme, that he thought the goal, which the National Party campaigned on, was unrealistic.
"I don't think we can catch up with Australia," he said.
"Australia is a most unusual country... blessed by God sprinkling minerals across the top of the surface in very easily accessible areas."
Instead, New Zealand should focus better on taking advantage of the crumbs that fell from Australia's table.
Catching up with Australia's economic growth and wage rates is one of the Government's main objectives because it wants to stem the trans-Tasman brain drain and raise the standard of living.
Mr Key was clearly unimpressed when asked about the remarks on TV One's Breakfast programme this morning.
"It's a fairly negative view about New Zealand's future and I just don't agree with it," he said.
"It's not to say its not difficult or challenging, everyone knows that."
While Australia had easily accessible minerals it struggled with water resources and had other problems.
Thirty years ago New Zealand had the same wage rate as Australia.
"They still had their minerals back then. There are lots of things we can do to turn our country around."
He said, for example, the Avatar film contributed $307 million to the economy and created 700 jobs.
"So to sort of write off the future of New Zealand and say we can never catch Australia is a fatalistic view that I just don't buy into it... It's an aspirational goal but I think it's also realistic. I think we can get there."
He said the Government was focused on working to benefit from Australia's gains and had made it easier to businesses to operate between the countries.
