Cautious optimism over closer Aust.-N.Z. ties

Press, 13 August 1980, Page 1

Cautious optimism over closer Aust.-N.Z. ties

NZPA correspondent Canberra New Zealand and Australia had scope to work } more closely in dealings . with other countries and ? trading: blocs, said the ; Australian Deputy Prime ; Minister (Mr Dougles Anthony) in Canberra yester- ' day. * 7 /Recent trends in inter-

nationaltrading showed f the advantages of a closed 5 bilateral". 1 relationship ' beS tween ..'the two countries, .-. he ? said at the opening of a ; three-day Australian /National University semi- / nar on Australia-New Zea- ; land; economic issues,.

. “There are clear signs of ■ growing bilateralism in international trade, a trend ■? i that favours- countries with greater economic strength, or:those that have formed / trading blocs- to gain col- ;, lectiye strength,” Mr Ani. thony said. ■ . .. : “There would seem, to if be - scope for Australia and ; New Zealand to adopt a more • co-ordinated . approach - in "pursuing their mutual trading aims with s: third countries, and with - trading blocs, as well as in wider matters,” .he said. Mr Anthony, who is also / Australia’s Minister of Trade and Resources, had. -.the -first round of annual talks yesterday with the . New Zealand Deputy Prime Minister (Mr Tal-

• boys) and the Minister of Trade and- Industry (Mr Adams-Schneider), on the

New Zealand-Australia Free Trade Agreement. The talks also entail a review of progress in steps towards a closer economic relationship between Australia and New Zealand. Mr Anthony said that both Governments accepted that no decisions could be taken until studies were completed, and there had been full consultation with interested parties. In the meantime, trans-Tasman trade had to continue to flow under the existing framework qf N.A.F.T.A., in spit 4 of, its limitations, and aspects of it that concerned -both. Governments. “ini the' search for . that new approach, it is essential that difficulties in.some sectors of industry and agriculture, in either country, 1 are not put forward as insurmountable - obstacles,”, he said.

■ T'.am confident that such problems can -be overcome by a process of gradual adjustment,., the kind ■’ of;' adjustment that would be essential in any phasing-in of a new relationship. . -■ >•

“We have . too much to lose. from, failure, and too much-to gain from success, to take a defeatist attitude,” said Mr 'Anthony; ’ He aisp.said.that a world facing' slower’ economic growth in the 1980 s would look towards the region to provide, an impetus 1 for -ts economic benefit.

Competition. would' be intense, ‘ but - increased

trans-Tasman trade, based on a more competitive environment, could provide the incentive for industry restructuring. “It could contribute to increased efficiency, and increased competitiveness in international trade,” Mr Anthony said. Mr Taiboys said that there were no apparent insurmountable problems in the steps towards closer economic co-operation. “At this stage, all that can be said is that nothing has been identified that appears to be beyond technical solution,” said Mr Taiboys. The eventual questions for Australia and New Zealand , would be whether an acceptable balance, of advantages could be negotiated, in accordance with the broad principles laid down by the two countries’ Prime Ministers in March. Mr Taiboys was referring to the meeting between the-. New Zealand Prime Minister (Mr Muldoon). and. the . Australian Prime Minister (Mr Fraser) in Wellington, at which they' outlined a framework for additional study on closer economic relations between the two countries.’

“I hope that an acceptable over-ail 'balance can be . negotiated,” said Mr Taiboys. .

Integration with Australia would be the best way, to stop the flow of New ZealanderS across the Tasman, said the chairman of the New Zealand Planning Council (Sir Frank Holmes).

Sir Frank, in Canberra for the seminar, said that one of the main arguments for integration was that the gradual freeing of trade across the Tasman would help to accelerate policy changes to increase the long-term strength of the economy.

It would also improve industrial relations and social welfare in. New Zealand, he. said. ■. “This, is the best way of reversing the recent tendency for people to flee, to Australia.” Sir Frank said that New Zealand had great opportunities for economic, social, and cultural development and to take, advantage of them a positive and out war d-looking development policy had to be adopted. That policy

would emphasise incentives, and also competition, for all industries and services to become more efficient.

“To my mind, integration with Australia, in accordance with the general’ principles adopted by the Prime Ministers in March, is fully consistent with “the general development policies which we Should follow in our own interests,” he said. Some New Zealanders feared that closer integration with Australia would cause businesses to move across to Australia, and a drift of skilled people across the Tasman, Sir Frank said.

“I. fear precisely the opposite: a rejecttion by New Zealand of the opportunities to move to integration, based on unwillingness to face free competition across the Tasman, would represent a victory for an inwardlooking and restrictive policy, which is not the basis for improvement in the quality of lives in this country../

“If we decide that we cannot compete with the Australians, what hope have/we of doing well in

exporting on a wider front?” Sir Frank also said that some commentators had seen the proposals for closer economic integration as an Australian plot to take over the New Zealand economy, but he believed that it was New Zealand which had, until recently, tried to speed up the play. ■ In Melbourne, the chairman of the Australian Dairy Corporation (Mr Malcolm Vawser) said yesterday that agreement had been reached with the New Zealand Dairy Board about the quantity of New Zealand cheese entering Australia.

Mr Vawser said that the chairman of the Dairy Board (Mr K. Mehrtens) had assured the. Australian dairy industry that the board would follow a. reasonable restraint policy towards its cheese entering Australia, and that New Zealand had no intention of disrupting the Australian market. To this end, it had been agreed that, for 1980, the Dairy Board would voluntarily limit the amount of cheese entering Australia to the 1979 level.