New Zealand's Prime Minister John Key is defending the $26-million cost of deciding whether to change the country's flag.
He says it's the price of democracy and there must be a serious process for deciding such an important issue.
The first referendum will be held before the end of next year when voters will be asked to choose a preferred alternative flag design from three or four options.
In the second referendum, in April 2016, voters will get to choose between the winning alternative design and the current flag.
Bill Ralston is a political commentator in New Zealand and former head of news for TV NZ.
He told Peggy Giakoumelos that there are a few theories as to why the Mr Key has chosen now to focus on this issue.
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