Peters ready to build US bridges

Foreign Minister Winston Peters says he is prepared to tackle head-on the "big challenge" of rebuilding New Zealand's relationships with the United States.

His diplomatic skills will be put to the test early in the New Year when he is expected to lead moves to open discussions with the US about burying the 20-year-old dispute over nuclear ships. Departing US Ambassador Charles Swindells signalled in July that Washington wanted to move on and establish a new security, economic and trade framework to strengthen the relationship.

Mr Peters said he could not make any detailed comments until he had been briefed by officials and consulted Prime Minister Helen Clark.

He may call on political colleagues such as former Trade Ministers Mike Moore (Labour) and Philip Burdon (National) to help push through his initiatives.

Mr Peters also said he was not out of step with Asian leaders in his views on immigration.

Critics have already produced a roll call of his more florid anti-Asian attacks as evidence he is not fit to represent New Zealand. But Mr Peters - who travelled to Asia when Treasurer and Deputy Prime Minister in the Bolger-led National Government - said Asian countries' immigration policies were "far more rigid than anything I have suggested".

"They understand very well what I am talking about. It is back home I have problems."

He said his desire to rebuild traditional relationships would not be at the expense of New Zealand's new friends in Asia.

The Foreign Minister also signalled he wanted to play a more active role in the South Pacific, where New Zealand's influence had been reduced since the region became a "battleground" for Chinese and Taiwanese influence.

NZ First has opposed the proposed China free-trade deal. But while "Cabinet might have to look for support elsewhere", Mr Peters was not against a trade protocol.

On a different issue Mr Peters was yesterday categorical that the "carbon tax is gone".

He predicted company taxes would be reduced within three years and Helen Clark would cut personal taxes before 2008 to "foreclose on the other side" (National) to reduce its chances of winning the next election. "Wouldn't you if you were the Prime Minister?"

He also indicated he had his views on filling the plum US ambassadorship, which is up for grabs early next year. A raft of high-profile names - including Governor-General Silvia Cartwright - has been privately floated.

But Mr Peters emphasised the job should be filled by someone with "diplomatic and trade skills", saying that he could be prepared to support the appointment of a high-profile former politician who had the right credentials.

Mr Peters also returned fire on National leader Don Brash, who slammed his appointment as "astonishing ... not just for the New Zealand public but the whole region which distrusts Winston Peters".

Mr Peters scoffed at the Brash attack, saying point-blank: "National publicly floated the same option without even talking to me".