"You are always looking to improve, "he says, "and when someone asks me 'who would you bring in?' I say '16 new players' because you always want 16 players better than what you have got - whether you are Real Madrid or whoever.
"You want to better your team all the time and that is the way you progress - but when you bring players in they have to make you a better team - it is not just about better individuals.
"You have to take your time bringing players in, but you can only do that for so long, because other people are looking at the good players as well.
"West Ham can attract players in the first division if they are prepared to have that one season in it; we are not kidding ourselves that it wouldn't have been easier in the Premiership but there are still be good players out there that we will be trying to get if it is possible.
"It is a waste of time getting, say, second division players who would take you into the second division.
"That said, there are some very good players in the second division and people are scared to take a chance.
"Most of the top teams abroad go to the lower divisions in their country and find young players because they know they will be able to nurture them and help them step up a level.
"That is something we have got to look at, because I have been in the three divisions and there are some quality players there if you take a chance.
"People say 'where did he come from' when you take a chance and Jon Stead at Blackburn is a prime example.
"Their fans might not have been excited by the name at first but he has come in and shown he can do it - and that is a shot in the arm for the lower divisions.
"On the other hand smaller clubs often want astronomical amounts of money, which is why clubs go abroad.
"There is no doubt that there is quality in the lower divisions, though, because a lot of clubs have had to cut their cloth accordingly and a lot of youngsters that would never have been near the first team have come into it and done well.
"There is one thing we want to do at this club, and that is to get it into the Premiership as quickly as we can - and we will bring in the players to do that.
"You have always got to be interested in players elsewhere because you always have to look to improve."
Peter says he enjoyed working with Brian Deane last season and adds:
"Brian was excellent all the time I was there last season, but obviously he didn't get as many chances as he would probably have liked.
"Every time he was on the pitch he did something for us, and even if he was getting to the wrong end of his career legs-wise his intelligence and the way he played always gave us something different.
"I have nothing but praise for his performances and he knew it was difficult for him to be going to get 90 minutes continuously in the first division.
"Just trying to get your body going all the time, as I experienced, is physically difficult - no matter how much training you have.
"It becomes a tough process getting through the games but he has been first class and I am sure he will have plenty of clubs looking to get him."