Opposition parties say the government is "insane" to cut diplomatic posts at a time when New Zealand needs overseas representation more than ever.
Reacting to confirmation that 305 positions are being axed in the Ministry of Foreign Affairs and Trade, NZ First leader Winston Peters says the government is engaged in a dangerous experiment driven by cutting costs.
The former foreign minister says countries like Singapore, Brazil and Norway are increasing their overseas posts "because they know how the world works".
"This is an insane move because New Zealand is desperately trying to increase its overseas trade and it needs diplomatic representation to smooth the way."
Labour's Phil Goff, another former foreign minister, says the ministry is reacting to government demands that it cut its $400 million budget by $40m.
"However they dress it up, this is a gutting of core ministry staff," he said.
"It will hugely damage the capacity and performance of a ministry that has a reputation for competency, effectiveness and commitment."
The Green Party's foreign affairs spokesman, Kennedy Graham, says future foreign policy will be dominated by purely trade interests.
"The restructuring at MFAT seems aimed at replacing foreign policy staff with those who will put business interests first," he said.
"New Zealand's reputation as a country with a proudly independent foreign policy risks being tarnished if we gut the ministry of experienced staff."
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