Mr Peters said he had a message for the "politically correct wowsers dreaming up rubbish like this".
"Ordinary New Zealanders going about their lawful activities paid taxes to pay their salaries, so stop dreaming up stupid ideas to justify your existence."
Describing BYO at a provincial race meeting as representing 'serious harm' was so far off the planet that people would laugh if it came from "a certain political party," but as an official recommendation to the Police Minister it was seriously worrying, Mr Peters said.
"It is BYO at the races today, but it will become a blanket ban on alcohol at community and family picnics next. Nanny state recommendations like this will not fly when the vast majority of Kiwis treat alcohol responsibly, and we need policy to reflect that," he added.
"The fact is that the mass majority of people comply with the law and are not in any way a social problem. For that small minority who cannot behave responsibly with alcohol, we should return the drunk and disorderly laws, which an equally out-of-touch Parliament removed some time ago.
"What is being recommended here will destroy a significant part of New Zealand social life, and particularly significant events in the provinces. It's time to tell the Nazi-like attitude cops to take a hike."
Westland Mayor Bruce Smith has vowed to keep the annual Kumara Nuggets race meeting BYO, although bad behaviour in Auckland and "Wellington red tape" was making that increasingly difficult.
"For 134 years families on the Coast have gone to the Kumara races. They take a chilly bin, they take a hamper, and they sit around the racecourse. They have a glass of wine sitting in the sun," Mr Smith said.
"Our communities right up and down the Coast are really focused on alcohol and drug abuse. Those things are no good for a community. But we are not going to allow a bureaucratic bit of red tape based in Wellington to stuff our events up.
"If they want to outlaw (BYO), what it will do is kill the Kumara races. And where is the benefit? Tell them to stick to Auckland and tidy up the mess up there and leave us to ourselves."