KEY POINTS:
Winston Peters could remain foreign minister in a National government if his support was needed for the party to govern, National leader John Key said today.
Speaking on TV One's Breakfast this morning, Mr Key said it was possible the New Zealand First leader could hang on to his ministerial role.
He told the programme: "If we were in a position to put together a government with small parties we would enter negotiations in good faith."
Asked if that could include Mr Peters as foreign minister, he said: "Yes, conceivably."
New Zealand First today put advertisements in major daily newspapers today asking what was in the trade deal with China for New Zealand.
NZ First leader Winston Peters yesterday confirmed his party would not support the New Zealand free trade agreement with China.
Mr Peters said there was not enough in the deal for New Zealand as it did not contain enough concessions on the Chinese side to make it worthwhile.
He said that because New Zealand had prematurely removed tariffs in the 1980s and 1990s, China had been enjoying free trade into New Zealand for years.
But it was reducing tariffs only slowly under this trade deal.
The China FTA did not go far enough to address a $3.6 billion trade deficit, he said.
Under his party's support agreement with the Government, NZ First is allowed to agree to disagree on trade policy.
NZ First has long held the position that it opposes free trade agreements with low wage economies.
But because Mr Peters is foreign affairs minister, he is in the unusual position of having to pursue the government line while overseas while speaking out against it at home.
Mr Peters said yesterday that if asked about the trade deal with China while on overseas business he would say it was a trade matter that was handled by Trade Minister Phil Goff.
But he would also say there was not enough in it for New Zealand, he said.
New Zealand could have done better if China had given New Zealand a better deal, he said.
Under the deal China reduces some tariffs from October 1 and begins phasing the rest out until 96 per cent of them have been removed by 2019.
But Mr Peters said today on Radio New Zealand that this country was effectively waiting "37 years" for the deal to come to full maturity given it had slashed tariffs in the 1980s.
NZ First's opposition to the deal does not mean it will not go through. The Government has enough support from other parties - including National - to get legislation passed.
The quarter-page ad - which includes Mr Peters' photograph - published in newspapers today has the headline "What's in it for us?"
It outlines NZ First's opposition to the trade deal, the sale of Auckland International Airport into "foreign hands", and the sale of the dairy industry to foreign interests.
"Why? Since 1984 we have fallen further behind countries who once envied us. It all started with the dumb idea that we could sell our key assets to foreigners and still compete," the ad said.
It also asks readers to send in responses over whether they support the China FTA, want to keep New Zealand's dairy industry and keep Auckland International Airport.
A spokesman for the Electoral Commission said commissioners would look at the advertisement to see whether it breached new electoral finance laws, although it had not received a complaint about it.
Commissioners would look at it at their next meeting on April 24, he said.
The ad has been paid for by taxpayer funding and contains the parliamentary crest.
Political parties in Parliament get taxpayer funding for such activities.
Mr Peters told Radio New Zealand today the advertisement was not part of his or NZ First's election campaign.
"It's the here and now as we stand here and examine this deal and say to ourselves 'is this the best we could have done, yes or no?"'
Questioned about taxpayer funding for the ad, Mr Peters said that it came under the budget "the National Party and every other political party has got".
"There's nothing unique or different about that. It's here and now. It's not part of the next election. There'll be a vote in Parliament about present policy very shortly."
Mr Peters said he "of course" thought New Zealand should keep negotiating other free trade agreements including with Asean because having failed to take other policy measures, that was the best thing New Zealand could do.
Prime Minister Helen Clark said yesterday that NZ First's position on the China FTA came as no surprise and she was relaxed about it.
- NZPA
