"But when it comes to the money being given back to those people who do all the work and create all the wealth, it's a one-way traffic system. It goes to Wellington, but it doesn't come back."
Mr Peters said in the year to July 2016, tourism in the wider Whanganui region amounted to $115 million.
"And how much of that did you get back? I'll tell you - you got doughnuts back. You provide all the infrastructure, all the hospitality, all the character that people would come to a place like Whanganui for - and the bureaucrats take the money and never give anything back.
"Our plan is to return the GST earned in Whanganui from international tourists straight back to Whanganui."
Meanwhile, Whanganui will have to wait a little longer to find out who the New Zealand First candidate for the electorate will be. Mr Peters confirmed an announcement would be made in about three weeks' time.
After his speech, Mr Peters took questions from the audience, which covered such topics as the health system, the use of 1080, apprenticeships, housing affordability and lifting GST on fresh food.
In response to a question about punishment for drug dealers, Mr Peters said he would introduce hard labour for drug dealers.
"I don't believe in building more prisons, by the way. I believe in taking people out of prisons and sentencing them to hard labour."