New Zealand Rules Out Combat Troops to Fight IS in Iraq

New Zealand will not send combat troops to battle the Islamic State (IS) group but is prepared to help boost the Iraqi military's capacity to fight the jihadists, Prime Minister John Key said Wednesday.

Key unveiled a range of policies aimed at countering the threat from IS both at home and abroad, including boosting domestic intelligence agencies to guard against a Canada-style attack. 

He said the emergence of IS, also known as ISIS or ISIL, was a "game changer" for Western nations, because it not only destabilized the Middle East but also increased the risk of domestic attacks by radicalized extremists.

Wellington was willing to play a part in international efforts to defeat the group but this did not extend to sending New Zealand troops into battle, he added.

"While building a modern Iraqi military is clearly important, New Zealand cannot, and should not, fight Iraqis' battles for them," Key told a foreign policy think-tank in Wellington.

"So today I am ruling out New Zealand sending SAS (special forces) or any troops into combat roles in Iraq."

He added: "Should New Zealand military personnel be deployed in Iraq they would be behind the wire and limited to training local forces in order to counter ISIL and legitimately protect innocent people."

New Zealand has played no part in previous US-led campaigns in Iraq but contributed both training personnel and elite SAS troops to operations in Afghanistan.

Defence Minister Gerry Brownlee said 10 military planners were being sent to the Middle East to assess how New Zealand could contribute to a "building partner capacity mission".

He said one focus for the New Zealanders would be how they could assist close ally Australia's military training efforts in Iraq, though he stressed any mission was dependent on an invitation from the government in Baghdad.

Key also said IS had succeeded in recruiting New Zealanders to its cause, revealing intelligence agencies had a watchlist of 30 to 40 people regarded as extremists, with another 30 to 40 under investigation.

He said those in the first group were either fighting in Syria, had attempted to join IS but had their passports cancelled, or were funding jihadists and promoting extremism.

"There are individuals here who are attracted to carrying out domestic attacks of the type we have seen prevented in Australia and recently take place in Canada," he said.

Key said IS meant New Zealand was no longer in a "benign" threat environment and outlined plans to give intelligence agencies greater powers.

The measures include making domestic video surveillance easier and allowing spies to carry out short-term domestic monitoring without a warrant in emergency situations.

Key said authorities would also be given more leeway to cancel passports of those who had engaged in, or were seeking to join, fighting with IS.