KEY POINTS:
Deputy Prime Minister Michael Cullen says he disagrees with Peter Dunne's view that Winston Peters' position as Foreign Minister would be untenable after he condemned New Zealand's free trade agreement with China abroad.
"There is no reason why Mr Peters should resign. He is not responsible for trade policy any more than Mr Dunne's comments on foreign affairs matters should lead to Mr Dunne having to resign as Minister of Revenue."
Dr Cullen's public mediation followed comments on Wednesday by Mr Dunne, who holds a parallel position to Mr Peters.
Mr Peters, the New Zealand First leader, and Mr Dunne, the United Future leader, are ministers outside Cabinet and their parties support the Labour-led minority Government with confidence and supply agreements. Dr Cullen said Mr Peters and Mr Dunne were free to speak as party leaders and were bound by collective Cabinet responsibility on matters only within their ministerial portfolio.
"I'm afraid that people seem to be working according to an old-fashioned model of Westminster collective responsibility. I'm afraid we are long past that."
Mr Peters said on Tuesday that New Zealand could have done a lot better on the deal. He said he would feel free as Foreign Minister to criticise the deal as not good enough if he were questioned about it overseas.
Trade Minister Phil Goff, who signed the deal in China, described criticisms of the deal as "bullshit" in private meetings with New Zealand business representatives.
Mr Peters sought to discredit the Herald report on Mr Goff's comments but Wellington Regional Chamber of Commerce chief executive Charles Finny has confirmed that Mr Goff used the word "bullshit" about Mr Peters' criticisms of the deal.
He said he agreed fully with Mr Goff's characterisation of the criticisms, and would be inclined to use stronger language.
Dr Cullen had no problem with the "bullshit" reference.
"We are not going to now get so precious that we can't use the B-S word have we?" he asked reporters.
