On Friday, December 23, 2016, Foreign Minister Murray McCully, on behalf of New Zealand, co-sponsored United Nations Security resolution 2334 which labelled all settlements and territories "occupied" after 1967 by Israel as "illegal". I am no lawyer, but I know that it is anything but a foregone conclusion.
To begin with, Israel gained the territory after a defensive war in 1967. The area currently known as the West Bank or Judea and Samaria, which includes East Jerusalem and the Old City, was captured from Jordan who themselves captured the area after they went to war, along with several other Arab countries, with Israel in 1948, the day after Israel declared independence.
From 1948 until 1967 Jews were forbidden to enter the Old City and pray at the Western Wall, the holiest site in Judaism. The connection to the Old City in particular stretches back more than 3000 years, longer if you believe in the Bible. Evidence such as archaeological sites and artefacts have proved the historical connection of the Jews to the land and a solid claim to being the indigenous people of that area.
With regards to the Arab Palestinians, Israel offered to withdraw from the West Bank, or Judea and Samaria, directly after the Six-Day war and the Jordanians refused. Israel offered the Arab Palestinians an extensive peace deal in 2000 and then again in 2008, both times their leadership said no.
In 2000, as was the case after the Oslo accords in the 1990s, Israel was met with a barrage of terrorism, suicide bombings and the second intifada.
Resolution 2334 states, and McCully is on record as saying, that the settlements are the biggest obstacle to peace. Yet Israel withdrew from settlements in the Sinai in 1980 for peace with Egypt, then again with Egypt in 1988 over the disputed Sinai seaside resort of Taba, and most recently the Gaza Strip in 2005.
The settlements are therefore no obstacle to peace, despite what the UN Resolution or President Obama say.
The peace initiatives offered to Yasser Arafat in 2000 and Abu Mazen (Mahmoud Abbas) in 2005 declared Israel would withdraw from 98 per cent of the West Bank, and would annex 2 per cent of the area which is close to Jerusalem and had large Jewish population centres.