Foreign Affairs Minister Winston Peters is adamant foreign affairs funding should be protected. Photo / Mark Mitchell
Foreign Minister Winston Peters is emphasising the urgency with which New Zealand is deepening ties with Asian nations to shore up the country’s “prosperity and security”.
As his Government pursues extensive public sector cuts, Peters is reinforcing his view foreign affairs funding should not only be guarded, but increased, arguing it is directly linked to economic growth.
It follows Finance Minister Nicola Willis continuing her war of words with her coalition partner on the matter, claiming Peters would always protect diplomats’ funding for their “business class flights”, but revealing Peters’ foreign ministry is exempt from some of her cuts.
In an address at the Asia New Zealand Foundation’s Asia Symposium in Wellington, Peters pondered its theme relating to Asian nations emerging as “middle power” countries amid a fracturing global order, caused by the actions of the world’s most powerful nations.
While he was reticent to specify what nations held what level of power, Peters outlined the tax global conflict had imposed on small, trade-dependent countries like New Zealand in his argument for stronger connections in Asia.
“It’s fair to say New Zealand and its people have suffered more disruption and uncertainty originating from forces and events outside our shores this term, than either they or we would wish. It has not been an easy term,” Peters said.
“In some respects, we are living in the Asian century: what happens in the great Asian landmass matters hugely for the trajectory of world affairs.
“New Zealand’s prosperity and security are intertwined with Asia’s; we cannot afford to do anything less than engage with urgency, purpose, commitment and tenacity.”
The Government has ramped up its engagement with the region this term, making bilateral visits to 16 Asian countries and signing more than 20 agreements.
Chief among them was the free trade deal with India, however, much of the Government’s focus has been on South-East Asian nations more comparable to New Zealand.
While encouraging a return to the “rules-based order” of global affairs, Peters noted the shift “from rules to power” had prompted smaller nations to grow closer together.
“That has been palpable wherever we’ve travelled, the realisation that events in one region impact people and governments in another.”
Stronger connections between like-minded countries fed into Peters’ consistent call for “root and branch” reform of the United Nations, particularly the veto powers afforded to countries on the UN Security Council.
Peters has previously been critical of the ability of Russia to veto the council’s response to Russia’s war with Ukraine.
Peters twice mentioned the need for New Zealand to take a prudent approach to foreign policy amid an “uncertain global environment”, and what he described as a “lethargic approach” from former Labour foreign minister Nanaia Mahuta and her Government.
This had been a point of tension between Peters and PM Christopher Luxon of late, with emails released to the Herald showing Peters was concerned Luxon’s wish to exhibit more explicit support for the United States in its war with Iran was “imprudent” and would have “run counter to New Zealand’s national interests”.
However, Peters articulated the need for such a position, in a response to concerns New Zealand hadn’t been sufficiently vocal on the world stage, particularly regarding United States’ foreign policy.
“If our national voice has not always [been] to everyone’s liking, or been loud enough for them, then perhaps it is because we are still trying to rebuild its strength, and in our judgment there is much more to do.”
Peters also used his speech to drive home the importance of foreign affairs and the need for sustained or even improved funding.
“The effectiveness of our diplomatic efforts is closely related to the level of resources committed to supporting them,” he said.
“While we are acutely aware that it is the taxpayer to whom we are responsible for every spending choice made, we also think, during this tumultuous time, the public has never been more supportive of our efforts to bolster the country’s economic growth and boost its security.”
He argued other countries considered similar to New Zealand, such as Ireland and Croatia, had achieved greater economic success and tied that to increased investment in diplomacy and defence.
“We fight our budget corner hard, but until future New Zealand governments – whoever leads them – see defence and foreign policies not as a cost, but as a driver for making New Zealanders richer and more secure, a highly active diplomacy will be needed to compensate for the lack of resources.
“It’s an absolute necessity while we play budget catch-up.”
The Government’s Defence Capability Plan, announced last year, charted out a long-term spending plan that would make New Zealand’s defence spending worth 2% of the country’s GDP.
Speaking after his speech, Peters said it should be hiked to 3% “as fast as possible”.
Asked how long that could take, Peters said it could occur “within a year”, although he said it required “the right person with the right government.”
Peters’ well-known protection of foreign affairs funding was a central question after the Government this week announced it would carve $2.4 billion from the public service over the next four years. It intends capping public service numbers to 1% of the population by 2029 and implementing 2% budget cuts for many departments next year and 5% the following two years.
The Ministry of Foreign Affairs and Trade had not been among the departments named as exempt from those budget cuts.
However, Willis today confirmed in the House the ministry would not be forced to make the 2% cut this year.
Peters yesterday teased reporters, pointing to this year’s election when asked whether he had accepted budget cuts for his ministry over the next three years.
Speaking today before his speech, Peters reinforced the importance of sufficient foreign affairs funding.
“We’re a trading nation dependent upon trade completely and we need more people in the field, that’s been my view in all the times I’ve been a minister.”
Willis acknowledged she differed with Peters on the matter.
“[Peters] would always have the diplomats have more money for their budgets, for their business class flights and all of that stuff.
“My view is actually what the foreign affairs service can do, in the same way any other agency can do, is make sure that its back-office is efficient, that it is not duplicating services across government.”
Asked if diplomats should fly in economy class, Willis replied: “In some cases”.
She accepted the same applied to her when asked.
Willis claimed the ministry had made a Budget bid related to business class flights.
Peters, speaking to media after his speech, said he had spoken with officials and said of Willis’ statement: “It ain’t true.
“The bid was never submitted in the end, that’s what I found out.
“These budgets are prepared since last November, and you have preliminary talks, but that’s not your final bid.”
However, Peters did acknowledge the value of more comfortable travel.
“If you think I’m going to travel economy class for 18 hours, go to a hotel, change my gear, go to my first meeting, which we do, we always travel at night, then you would never be able to perform when you got there, you’d be dead, you’d be stuffed.”
He described the approach to foreign affairs funding from successive governments as “Scrooge-like”.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.