N.Z.-Aust. economic union proposed

Press, 27 May 1978, Page 19

N.Z.-Aust. economic union proposed

PA Dunedin The possibility of a treaty between NewZealand and Australia, bringing together existing relations in a full econ= omic union, was explored in the final paper to the Foreign Policy School in Dunedin.

The aim of the economic union would be the free circulation of persons, goods, capital and services said Mr and Mrs A. Burnett, from the Australian National University in Canberra, in a joint paper. It would also involve the co-ordination of economic, financial and social policies, and common policies of trade and finance, to third countries. Elements of foreign pol-

icy, defence, civil aviation and sea transport policies, affected by the common interest, would also require co-ordination. “The nightmare of an overwhelming structural edifice seems unfounded,” Mr and Mrs Burnett said in their paper. “The major problems would seem to be whether New Zealand could accept that the advantages in economic terms would justify the diminution of sov j ereignty involved in joining the larger country in an economic union. “Australia would have to deal with the problems of absorbing an economy which is competitive with its own, and which has persistent balance-of-pay-ments problems.” At this stage in the economic development of both countries, the implications of an economic union “might seem overwhelming to politicians,” Mr and Mrs Burnett said. “But at least the option should be put before them. Governmental consideration of an economic union is not a step which, in Australia at least, would be likely to win votes. It is surely preferable however, to woolly, qualified undertakings., “There would be no constitutional impediment to New Zealand’s accepting such an economic union. The position for Australia is more com’ plicated,” they said. One of the main difficulties is the need for a judicial body to hear and determine disputes, and difficulties that would arise

over the treaty provisions. “The easiest solution, assuming New Zealand is pragmatic, enough to wear it, would be to vest the High .Court of Australia itself with the power. “The Australian Constitution wOuid permit New Zealand judges to be appointed members of the Australian High Court, for the purposes of deciding matters which arose under a treaty of economic unions,” Mr and Mrs Burnett said.