Tauranga residents will be asked to vote on if NZ should have a new flag in the next parliamentary term, Prime Minister John Key announced today.

Speaking at Victoria University, the Prime Minister says it's his belief the design of the current flag symbolises a colonial and post-colonial era whose time has passed.

'I am proposing that we take one more step in the evolution of modern New Zealand by acknowledging our independence through a new flag,” says the Prime Minister.

As result, he's outlined a plan for a cross-party group of MPs to recommend the best referenda process, and a steering group to ensure the public has opportunity to engage in discussion on the flag and to submit design ideas.

'It's really important that consideration of a new flag includes genuine input from New Zealanders. All voices need an opportunity to be heard,” says the Prime Minister, who wants the country to talk about it – but not in election year.

'I do not think that it should dominate or distract from the other debates that occur in an election year.

'A flag that unites all New Zealanders should be selected by all New Zealanders. This decision is bigger than party politics.”

The Prime Minister says he wants to give a clear assurance and commitment that retaining the current flag is a very possible outcome from the process, and there will be no presumption in favour of a change.

In his speech, the Prime Minister says next year the country will commemorate the centenary of that fateful landing by the Anzacs on the Gallipoli Peninsula on April 25, 1915.

'But once the centenary has passed, I think it will be time for us to take some decisions about how we present ourselves to the world beyond 2015.

'For more than a hundred years the New Zealand flag has served us well, and we in turn have served it well. It has given us an identity. We have given it our loyalty.

'But the current flag represents the thinking by and about a young country moving from the 1800s to the 1900s.

The Prime Minister also believes New Zealand retains a strong and important constitutional link with the monarchy that he did not see a groundswell of support to change.

'Our status as a constitutional monarchy continues to serve us well.”

'[But] I am proposing that we take one more step in the evolution of modern New Zealand by acknowledging our independence through a new flag.

'Some people say that we should look at the flag only if we're also reviewing our wider constitutional arrangements. I don't agree.

The Prime Minister says if he remains in his role after September's general election, he'll write to leaders of all political parties in Parliament, asking them to nominate an MP to join a cross-party group to oversee the flag consideration process.

The group would recommend the best referenda process to follow, and be involved in nominating New Zealanders from outside Parliament to form a steering group, to be primarily responsible for ensuring the public has the opportunity to engage in the debate.

'One of the tasks of that steering group will be to seek submissions from the public on flag designs.

'I would like to see the referenda process completed during the next Parliamentary term, so it does not intrude on the 2017 elections.”

The Prime Minister says he acknowledges New Zealanders have a range of views on the idea of changing the flag.

'I also acknowledge that significant change can be difficult and unsettling for some people so this is not a debate to undertake lightly, or quickly.

'But my personal view is that it's time our flag reflected that we are a sovereign and successful nation that rightfully takes its place among developed economies in the 21st Century.

'It's my contention that when we engage internationally, in forums ranging from secondary school debating to the United Nations, or from age-grade representative sports teams to the Olympics, we should be represented by a flag that is distinctly New Zealand's.

'A flag that is readily identified by New Zealanders, and with New Zealanders. I believe the current flag is not that flag.

'I believe that not only can we do better, but that this is the right time to get on with it.”

The Prime Minister admits to liking the silver fern 'but I'm also open to other ideas and designs”.