New Zealand First has announced a new policy at what leader Winston Peters called a "rally" in Auckland on Sunday afternoon.

Mr Peters would hold two binding referendums on the same day. They would be on two issues:

Whether to retain or abolish Māori seats,

Whether to maintain or reduce the size of Parliament to 100 MPs.

No further policy was announced, but Mr Peters told the crowd policy in the "battle for New Zealand" would be announced over the next nine weeks.

Mr Peters used his speech to argue the National Party is lacking in stability, questioning Nick Smith's housing policy, policing policy and rates of unemployment.

He said political correctness is "threatening free speech in New Zealand" and defended his party's immigration and "one law for all" policies as "not racist".

Mr Peters said the "real racists" are politicians who bring in migrants while allowing services and infrastructure to fail.

"If it's not migrants that have helped cause a housing crisis, then the blame must lie with the government and politicians that failed to first build houses for them to come to," Mr Peters said.

The "real racist[s]" are "those politicians who didn't give a rat's derriere as to what environment immigrants were walking into to", he said.

Newshub.