The current flag was first used in 1869 and formally adopted in 1902.
Mr Key labelled it a relic from New Zealand's colonial past and had previously said he would prefer a new design featuring the silver fern on a black background, a design used by the All Blacks and other national sporting teams.
Peter Farmer, who donated the flagpole at the Takitimu Drive-Elizabeth St intersection to the city, said a new design should should be discussed but did not think it needed to change.
"There is a huge amount of history with it as it sits, obviously if New Zealand ever became a republic it would be a more appropriate time. At the moment all aspects of that flag are as relevant today as they were when it was first designed," he said.
He understood others wanting to change the design to be less like Australia's national flag but questioned how important it was.
Mount Maunganui RSA general manager Peter Moss said he did not think there was a good reason for the flag to be changed.
"I would think most returned servicemen would think the same, because it is the flag that they fought for. There have been two world wars fought under the current flag, and lots of other conflicts and it was good enough to fight for then so it should be good enough to keep now."
Rob Moore, who proudly flies the New Zealand and other nations' flags in his back yard, said the flag was past its use-by date and should be revamped -- but not next year.
"It's the 100th anniversary of ANZAC so it would be inappropriate to do it next year but we need something unique to New Zealand now, something that shows off all the different groups that live in New Zealand now. We are all one nation now. We need to get away from the British theme but next year is not the right year to do it."
The change was needed as the flag was too similar to the Australian flag, he said.
- Additional reporting Lincoln Tan
