Winston Peters wants the government to favour wool carpeting over synthetics.

NZ First are calling for wool carpets to be put back on the floors of government departments and state houses.

Party leader Winston Peters believes the move would revitalise New Zealand's declining wool industry and make for better building.

It's a clear bid for the rural vote, which NZ First have been chasing ever since Peters' win in Northland in 2015.

Murray Wilson/ Fairfax NZ. The industry has welcomed the policy.

"New Zealand First will swing government procurement in behind natural, renewable and sustainable wool and natural fibres, both as floor coverings and as a material of choice for insulation," Peters said.

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"It is wrong that in the six-years since January 2011, the Ministry for Social Development purchased no woollen carpets but thousands of square metres of synthetics."

"Wool and other natural fibres are wonder products and government can help take them to the next level by specifying them as products of choice."

"Unlike National, New Zealand First believes in wool because it is naturally insulating, flame retardant, non-allergenic and it breathes. If that's not enough, wool can be recycled and unlike the stuff made from oil, it biodegrades when it is no longer needed."

Peters said even the floors of Parliament had more synthetic carpets than wool.

Prime Minister Bill English rubbished the idea.

"There's any number of industries that would want a bit of a boost from some kind of political guarantee that their product would be purchased. New Zealand hasn't operated that way for a long time and we're not going to start now," English said.

"It's an unrealistic conversation because Mr. Peters has no idea whether it's commercially viable on the government's terms."

Wool was once one of New Zealand's most important exports.

New Zealand's sheep herd peaked in 1982 at 70 million.

In 2010 it was down to 33 million, with sheep meat having long overtaken wool's export value. Last week one wool broker described the current season as the worst in 50 years.

Statistics New Zealand attribute the drop-off to an end in Government subsidies in 1984 and the rise of synthetic fibres.

Peters blames it on "crony contracts".

"In 1997, just 20-years ago, wool was a $1bn export, which would be worth $1.5bn in today's dollars. Yet donkey-like leadership and crony contracts that favour the few, has seen wool's export value fall to just $531m in the year to May 2017 and that's down 33.1 per cent on 2016."

Federated Farmers meat and fibre chairperson Miles Anderson said the policy was "terrific".

"All of the sheep farmers would no doubt support it. Synthetics are made from the petrochemical industry, but we are supposed to the moving towards a more sustainable future, and I think wool should be part of that," he said.

Mark Shadbolt, chairman of wool growers group Wools of NZ, was all for it too.

"It's a disappointment that we see the government supporting synthetic industries more so than their primary sector," Shadbolt said.

He's been advocating for the Government to go one step further and specify wool insulation as part of the building code, as it is more fire retardant than synthetic solutions.

While wool might be more expensive than synthetics at purchase, Shadbolt believed the safety benefits were worth it.

"It would save money, it would save lives. How do you place the value on a life versus the value of a product?"

Jordan Williams of right-wing think tank the Taxpayers' Union described the policy as a step back to the 1970s - when Peters first entered Parliament as a National MP under protectionist Prime Minister Rob Muldoon.

"Carpets, as well as all other government supplies, should be selected on value for money alone. This sort of crony favouritism by politicians is exactly the sort of thing which sent New Zealand bust in the early days of Peters' career," Williams said.

"Here's hoping Peters' release is merely an ill-timed joke and that he hasn't come full circle".

MBIE, who handle procurement for government buildings, have been approached for comment.

ACT leader David Seymour said the plan was "some kind of nutty attempt at 1970s-style protectionism."

"Politicians should not be making decisions about carpet."