P.M. welcomes news on C.E.R.

Press, 18 March 1983, Page 3

P.M. welcomes news on C.E.R.

PA Wellington The Prime Minister, Mr Muldoon, yesterday welcomed the new Australian Government's "positive” attitude to Tasman trade.

Commenting on the Labour Government s decision to approve closer economic relations, made at its first Cabinet meeting on Wednesday, Mr Muldoon said the new administration's statements were “good news for our people.” The Australian Deputy Prime Minister and Trade Minister, Mr Lionel Bowen, announced that the Federal Government would proceed with implementing the C.E.R. agreement negotiated under the previous Government.

The agreement was to take effect on January 1 but was postponed because of the impending Australian General Election. It will result in the breaking down of trade barriers. Mr Bowen said that the New Zealand Government had been informed by the Prime Minister, Mr Hawke, who had spoken to Mr Muldoon.

The agreement was an historic step in the traditional relationship between the two nations, Mr Bowen

said. He looked forward to its contributing to the prosperity of the two countries. Safeguards to protect the interests of both countries were built into the agreement,. including arrangements for monitoring to avoid any disruption to the economic interests of both New Zealand and Australia. Mr Bowen said. Mr Muldoon said there were still two or three areas of C.E.R. to bring together, but the final signing would go ahead in about a week. It would be performed by the New Zealand High Commissioner in Canberra, Sir Laurie Francis, and probably Mr Bowen. The outstanding issues were not big and included a “hiccup” on the sale of New Zealand orange juice to Australia. The amount involved was worth only about $2OOO. Mr Muldoon had a telephone call from Mr Hawke about 7 p.m. on Wednesday advising him of the Cabinet decision.

“He was very positive and wants to see Tasman trade increasing in both directions. That, from my point of view, is a very good start to the relationship with the new Australian

Government and obviously he is going to be very positive as far as the Tasman relationship is concerned,” Mr Muldoon said.

Mr Hawke had “expressed the hope that we could get together before too long and that certainly will be my intention.”

Mr Muldoon said the Governments had yet to finalise a “longstanding difficulty” over horticultural exports to Australia.

"We can send only half a dozen at a time of any plant species while in the opposite direction you can send a thousand.

“This is a sort of qurantine thing which we regard as a non-tariff barrier,” he said. Another issue involves New Zealand financial institutions in Australia. “The Australian financial institutions have had major penetration of our financial sector for many, many years.

“The question arises whether New Zealand banks, under C.E.R., can be given the opportunity to service their customers- in Australia rather than having to work through corresponding banks,” Mr Muldoon said.