Labour leader Andrew Little says he hasn't given a great deal of thought to whether gender reassignment surgery should be free.

A possible Labour Party policy for free gender reassignment surgery has been dismissed as "nutty" by the Government.

The Labour Party could end up voting on the policy for free gender reassignment surgery after the idea was passed at two regional party conferences.

Labour's general secretary Tim Barnett said the proposal came from Young Labour, who want to ensure there's access to hormone replacement therapy and gender reassignment surgery and that it's publicly funded.

But the Government has dismissed the idea, with Health Minister Jonathan Coleman describing the idea as "nutty".

Gender reassignment is currently free for limited numbers and now the proposal will move to the next stage - of which there are at least three - before it hits any official status, Barnett said.

Labour leader Andrew Little hadn't had the issue raised with him personally and said he hadn't given it a great deal of thought.

"I'm quite happy with my gender."

"That's a complex issue and not an issue I'd make a policy up on on the hoof," he said.

Labour MPs polled on their way to Caucus on Tuesday weren't overly keen on the idea and didn't think Labour voters would see it as a priority.

Napier MP Stuart Nash was at a regional conference where it was raised but he said he voted against it because he didn't think it was an important issue for New Zealanders.

"To be honest, never once in Napier has anyone ever said they're not going to vote for Labour because we're not funding gender reassignment surgery."

"I don't think it's an issue that's important to the people of New Zealand," he said.

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Mt Albert MP David Shearer wasn't entirely sure what the remit was but didn't think it sounded like "hardcore Labour policy".

"What is it?" he asked reporters.

"I wasn't there during that particular remit so I'm not even sure what it's about."

Shearer doubted it was something that was the "main thrust" of what the party is doing at the moment.

Wellington Central MP Grant Robertson didn't feel strongly about the funding of gender reassignment surgery either way but acknowledged it was a "complex issue" that would be an "expensive undertaking".

Coleman said that, like all regional Labour Party ideas, he did not agree with the proposal.

"We've got a lot of priorities in the health system, and I'm quite happy with [the current funding of] four procedures every two years," Coleman said.

He described the proposal as a "nutty idea" which was not high on his list of priorities, and reflected the focus of the Labour Party.

"I think they're totally out to lunch and it show's you why these people will be unelectable for a very long time."

The Labour Party isn't a stranger to socially progressive policy ideas - there was the 2013 'man ban ' - a controversial plan to allow electorates to seek women-only candidate selection - and back in 2009 the opposition floated the idea of taxpayer-funded condoms at supermarkets, dairies and service stations.

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