Key Takeaways
- Winston Peters warned that New Zealand has faced unprecedented external disruption this term and stressed that the country’s future prosperity and security are tightly linked to Asia.
- The government has deepened ties with Asia through 16 bilateral visits, over 20 agreements—including a landmark free‑trade deal with India—and a particular focus on Southeast Asian partners comparable to New Zealand.
- Peters called for urgent reform of the United Nations, especially the veto power held by permanent Security Council members, citing Russia’s ability to block action on Ukraine as a stark example.
- He contrasted his own “prudent” foreign‑policy approach with Prime Minister Christopher Luxon’s more explicit backing of the United States in the Iran‑Israel conflict, noting internal tensions revealed by leaked emails.
- Peters argued that a strong diplomatic voice requires adequate funding, pointing to Ireland and Croatia as examples where greater investment in diplomacy and defence correlated with economic success.
- While the government’s Defence Capability Plan targets defence spending at 2 % of GDP, Peters urged a rapid increase to 3 % of GDP to bolster security.
- Amid a planned $2.4 billion public‑service cut over four years, Peters fought to shield the Ministry of Foreign Affairs and Trade (MFAT) from the reductions, disputing Finance Minister Nicola Willis’s claim that MFAT had sought a business‑class travel budget bid.
- He defended the need for comfortable travel for diplomats on long hauls, describing successive governments’ funding attitude as “Scrooge‑like” and insisting that an active, well‑resourced foreign service is essential for New Zealand’s wealth and safety.
Peters Highlights External Disruption and the Asian Century
Winston Peters opened his address by acknowledging that New Zealand and its people have endured more disruption and uncertainty originating from outside the nation’s borders than desirable during the current parliamentary term. He characterised the era as one in which “we are living in the Asian century,” noting that developments across the vast Asian landmass exert a disproportionate influence on global trajectories. Consequently, Peters asserted that New Zealand’s prosperity and security are inseparable from Asia’s fortunes, urging the country to engage with the region with urgency, purpose, commitment, and tenacity.
Government’s Expanded Asian Engagement
To operationalise that vision, the government has intensified its diplomatic outreach, conducting bilateral visits to 16 Asian nations and concluding more than 20 agreements. The flagship arrangement is the free‑trade deal with India, while a substantial portion of the effort has focused on Southeast Asian states whose economies and sizes resemble New Zealand’s own. Peters observed that these interactions have reinforced a growing recognition among smaller nations that events in one region reverberate worldwide, prompting a shift toward closer cooperation among like‑minded countries.
Call for UN Reform and Critique of the Veto System
Building on the theme of multilateral cooperation, Peters renewed his longstanding push for “root and branch” reform of the United Nations, particularly targeting the veto privileges granted to the five permanent members of the Security Council. He criticised the current system for allowing a single power—exemplified by Russia’s ability to block any council response to its war in Ukraine—to thwart collective action. According to Peters, this reality has accelerated the move “from rules to power,” compelling smaller states to band together to safeguard their interests.
Diverging Views on Foreign Policy Prudence
Peters also contrasted his own cautious foreign‑policy stance with that of Prime Minister Christopher Luxon, whose willingness to exhibit explicit support for the United States in its confrontation with Iran has sparked internal debate. Emails released to the New Zealand Herald revealed Peters’ concern that Luxon’s approach could be “imprudent” and run counter to New Zealand’s national interests. Despite the tension, Peters affirmed that a measured posture remains necessary, especially as the country seeks to rebuild the strength and audibility of its national voice on the world stage.
Rebuilding New Zealand’s Diplomatic Voice
Addressing criticisms that New Zealand has not been sufficiently vocal internationally, Peters suggested that any perceived quietness stems from an ongoing effort to restore the potency of its diplomatic presence. He argued that the nation’s voice has not always been to everyone’s liking or loud enough because it is still in a reconstruction phase, and there remains considerable work to be done to amplify its influence in global affairs.
The Funding Imperative for Diplomacy and Defence
A central thrust of Peters’ speech was the indispensability of adequate resources for effective foreign policy. He asserted that “the effectiveness of our diplomatic efforts is closely related to the level of resources committed to supporting them.” Drawing comparisons with Ireland and Croatia—nations of similar size that have achieved greater economic success through heightened investment in diplomacy and defence—Peters urged New Zealand to view foreign affairs and defence not as mere costs but as drivers of national wealth and security. He supported the government’s Defence Capability Plan, which aims for defence spending to reach 2 % of GDP, but insisted that the target should be raised to 3 % of GDP “as fast as possible,” potentially achievable within a year given the right political leadership.
Public‑Service Cuts and the Fight for MFAT’s Budget
Peters’ advocacy for funding comes amid a broader austerity drive: the government announced plans to carve $2.4 billion from the public service over the next four years, cap public‑service numbers at 1 % of the population by 2029, and impose 2 % budget cuts next year followed by 5 % cuts in the subsequent two years. Initially, the Ministry of Foreign Affairs and Trade was not listed among the exempt departments, prompting Peters to challenge the cuts. Finance Minister Nicola Willis later confirmed that MFAT would not be forced to implement the 2 % reduction this year, though she questioned the necessity of lavish expenditures such as business‑class flights, suggesting that efficiencies could be found elsewhere.
Peters Rebukes Claims About Business‑Class Travel Bid
Willis further contended that MFAT had submitted a budget bid for business‑class travel, a claim Peters firmly denied. After consulting officials, he stated that no such bid had ever been filed, explaining that budget preparations begun the previous November involve preliminary talks that do not constitute final submissions. Peters acknowledged, however, that long‑haul travel demands comfort: he argued that expecting diplomats to endure 18‑hour economy flights, then immediately attend high‑level meetings, would impair performance and jeopardise New Zealand’s interests. He characterised successive governments’ funding attitudes toward foreign affairs as “Scrooge‑like,” insisting that a well‑resourced, active diplomatic service is essential while the country catches up on its budgetary commitments.
Conclusion: Diplomacy as a Cornerstone of National Prosperity
In sum, Winston Peters’ address painted a picture of a New Zealand navigating a turbulent external environment by deepening ties with Asia, advocating for multilateral reform, and insisting on prudent, well‑funded foreign policy. He warned that without sufficient investment in diplomacy and defence—comparable to peers like Ireland and Croatia—the nation risks falling short of its economic and security aspirations. Amid looming public‑service reductions, Peters continues to champion the cause of a robust, adequately resourced Ministry of Foreign Affairs and Trade, framing it not as a luxury but as a fundamental engine for national wealth and safety.