E&OE.............................................
PRIME MINISTER HOWARD:
Ladies and gentlemen, I'd like to start this news conference
by saying how delighted I am to have had the opportunity of welcoming
Mrs Shipley on her first visit overseas and her first visit to Australia
as New Zealand Prime Minister.
The relationship between our two countries is longstanding. It's
extremely close. It's very important to my Government. It's
very important to me, as I know it is to Mrs Shipley and her Government.
The bilateral relationship is in exceptionally fine fettle. In recent
days we've had a number of discussions, both personally and over
the telephone, regarding the contribution that each of our countries
is making to the possible coalition military operation in the Middle
East. We're working together very closely.
The goal would be for the closest possible cooperation between the
two countries in the ANZAC tradition. The practicalities of that,
of course, are things that need to be fully worked out and resolved
by ourselves and each of us in discussion with the United States.
There can be little doubt that, from both our perspectives, we hope
that a peaceful settlement at this late hour is still possible. And
we certainly hope that the peace mission of the United Nation's
Secretary-General achieves results.
On the economic front, of course, New Zealand is a very important
trading partner for Australia. The economic relationship embodied
in CER, which will be 15 years old this year, has been very valuable
to both Australia and New Zealand. The cultural and social and human
links between our two countries are also exceptionally close. And
I know that this visit has made a very important contribution to reinforcing
the strength of the bilateral relationship. I particularly have welcomed
the opportunity of meeting Jenny Shipley so early in her prime ministership.
We've had the opportunity, as well as dealing with the political
and economic issues that I've canvassed, we've also had
the chance of comparing some of our approaches to social policy, particularly
in the area of what I call, mutual obligation, and what is called
in New Zealand by another title, and in other countries, by other
titles again. But I couldn't emphasise too strongly the importance
of the association. The Trans-Tasman link is in very good shape. The
relationship, both politically and at a human level, is very warm.
And I know that all Australians and all New Zealanders will want both
governments to work together very closely in the years ahead.
PRIME MINISTER SHIPLEY:
Well, I too have welcomed the opportunity to meet Prime Minister Howard.
As he has said, there is no closer relationship or more special relationship,
from New Zealand's point of view, than with our Australian Trans-Tasman
partner. We have much in common. And the CER has been a highly successful
mutual relationship for 15 years now and we've had useful discussions
as to what we can do together to extend the advantages that that has
offered both of us.
On the issue of our international and regional responsibilities, while
New Zealand is a small country, it is one that has always sought to
do its share. And the recent decision to deploy troops to Iraq is
something that has been important to New Zealand and, in my view,
to New Zealanders.
It is our hope that we will be able to work as an ANZAC force. New
Zealanders and Australians have had a great history of being extremely
successful. And I'm pleased to say that our defence people are
working through to see if that is actually possible. And perhaps we'll
be in a position, in a few days, to confirm one way or another if
that's able to be achieved.
There are many things that can be done to progress our advantages
in a regional sense and I valued the opportunity to speak with the
Prime Minister on those issues. I also valued the opportunity to get
his update on the impact of the Asian economic circumstance, not only
on the Australian economy, but to try and make an assessment as to
the flow-on effects for the New Zealand economy. And that's been
a useful aspect of my trip to Australia.
I look forward to this ongoing relationship. While New Zealand looks
outwardly toward the world economies, we seek to be competitive. Australia
will, as far as I can tell, continue to be our most important partner
in both human and in trading terms. And I look forward to advancing
that relationship.
QUESTION:
Mr Howard, General Baker said on Wednesday that he had concerns about
the ability of New Zealand [inaudible] defence terms. Was that discussed
today and do you agree with those claims?
PRIME MINISTER HOWARD:
Well, the defence aspect of our relationship was discussed. New Zealand's
defence contribution is a matter, of course, to be determined by the
New Zealand Government, as Australia's defence contribution is
something to be determined by the Australian Government. And we had
a very candid discussion about this issue. But what New Zealand does
in relation to defence matters is a matter for the Government of that
country.
QUESTION:
Do you agree with General Baker, Prime Minister?
PRIME MINISTER HOWARD:
Well, I've said that what New Zealand does is a matter for New
Zealand.
QUESTION:
Mrs Shipley, did you think the General's comments were, perhaps
[inaudible]...
PRIME MINISTER SHIPLEY:
I do not intend to take them either personally, from our country's
point of view, or allow them to be taken out of context. I don't
believe anyone is questioning New Zealand's competency in defence
terms. Our forces are as professional as any you would find worldwide,
within the capacities that they have. I accept that there will be
a debate about our capacity as a nation to contribute regionally.
And the Government made clear, prior to last year, that we were to
expand our investment in our Defence Force. There is an additional
$72 million per annum for each of the next five years, in operational
terms, plus $300 million of capital going into our defence forces.
And for a little country, with the population the size of Sydney,
we think that is a reasonably significant reflection of both our ability
to contribute and also the necessity from our own point of view. I
accept that this will be a matter that will be discussed on an ongoing
basis between our colleagues here in Australia, but New Zealand does
understand that we must do our share regionally. And we believe our
White Paper on defence is a very significant change of direction,
from New Zealand's point of view, that can only be viewed as
positive.
QUESTION:
Mr Howard, given Mrs Shipley's saying there will be a debate
on New Zealand's capacity, do you think an ANZAC force in the
Gulf is desirable from Australia's point of view?
PRIME MINISTER HOWARD:
If we can achieve it, yes.
QUESTION:
What is the achievement?
PRIME MINISTER HOWARD:
Well, there's just some practical, logistical things involved
that the objective of working together very closely is a very desirable
one and we both want to achieve it. But there need to be things worked
out with the Americans and ourselves at a practical level. And could
I just take the opportunity of saying, as the Prime Minister of Australia,
that the personal competence and the fighting capacity of the New
Zealand defence forces is something that Australians have long admired.
QUESTION:
With the troubles in Indonesia, do you think Australia should possibly
concentrate more on that than [inaudible] so far away [inaudible]...
PRIME MINISTER HOWARD:
It is quite possible to keep your eye on a number of games at the
same time. It is quite possible to deal with different situations.
We are paying very close attention to what's happening in Indonesia.
We have a close relationship with Indonesia and I have a lot of regard
for what President Soeharto has achieved in that country. And I don't
think anybody should jump to conclusions either about his authority
within Indonesia or the fact that the country still, in the medium
and longer term, has very bright prospects. It would be a huge mistake
for people to allow what is now happening in Indonesia to cloud their
medium longer term view of what that country can achieve. It is going
through a fearful economic hammering at the present time. And that
is an occasion for friends of Indonesia, like Australia, to be understanding,
to be comprehending, to contribute the knowledge of our relationship
with Indonesia to the understanding of other countries. Australia's
understanding of Indonesia is special because of where we are and
the way in which the history of that relationship has evolved. And
we can bring insights and provide advice to others larger than ourselves
which they themselves cannot draw from their own sources.
QUESTION:
Mr Howard, have you given any thought to giving any help, on a military
basis, to the Indonesians and what sort of help that might be?
PRIME MINISTER HOWARD:
Well, we certainly haven't discussed the appointment of any forces,
no. Such an eventuality simply hasn't arisen. Of course not.
QUESTION:
Given the bilateral agreement you have with Indonesia...
PRIME MINISTER HOWARD:
Well, that issue has not come across my desk. It has not come to my
attention. It has not been discussed by me with anybody.
QUESTION:
Mrs Shipley, when do you expect to have some sort of a feeling for
what process has to be gone through for this [inaudible] are we talking
days, weeks?
PRIME MINISTER SHIPLEY:
No, no, days. And it will be much clearer very soon. As soon as there
is something to announce, I'm sure that that will be made clear.
Can I say, beyond that it is very unlikely that we will be commenting
from a New Zealand point of view. Once those arrangements are established,
I think, we need to allow the forces to get on and do what they've
been sent there to do. And we will not be speculating everyday on
either what they are doing or where they are.
QUESTION:
So this places New Zealand troops under Australian command?
PRIME MINISTER SHIPLEY:
Those matters are most certainly not clarified yet and as soon as
they we will let you know.
QUESTION:
Prime Minister, did Mr Howard raise with the [inaudible]...?
PRIME MINISTER SHIPLEY:
We discussed the frigate issues. I actually raised it because I know
it's a matter of interest to the Australians. And I've made
it very clear that the New Zealand Government reserves the right to
make this decision when it's appropriate. As you'll be aware,
the Minister of Defence was in Australia two weeks ago talking both
with the Minister and the companies involved. They are likely to bring
further information to New Zealand later this year. And if it warrants
further consideration, then that is when the Cabinet will consider
it.
QUESTION:
Mrs Shipley, did you discuss issues like - I know that [inaudible]
work-for-the-dole scheme - did you talk about that?
PRIME MINISTER SHIPLEY:
We certainly have. As the Prime Minister has said, western countries,
like our own, are grappling with how we'll get the best out of
our people, create the best opportunities and deliver social programmes
in a fair way that doesn't make things worse for folk but rather
better. I was very interested in what the Australian Government has
done with the 18 to 21 and 24 year olds, equally, I think there's
some interest in some of the things we are doing. And we've agreed
that we will keep an open dialogue on both what we're doing and
how we can mutually benefit from that work.
QUESTION:
Could you see a work-for-the-dole scheme coming in to New Zealand?
PRIME MINISTER HOWARD:
We are already planning, as part of the coalition agreement, a work-for-income
support strategy, both looking at people's work capacity rather
than the fact that they are simply unemployed or sick is a new focus
of New Zealand's work. And certainly work for payments and community
contribution are actively under consideration, indeed, they've
been announced to be implemented this year.
QUESTION:
Had you discussed the health of the Coalition Government in New Zealand
with...
PRIME MINISTER SHIPLEY:
With Prime Minister Howard?
QUESTION:
With Mr Howard?
PRIME MINISTER SHIPLEY:
We certainly discussed the political environment, but not in detail.
I am very confident that the New Zealand Coalition is going to survive
well. We announced our programme for the year on Tuesday. I think
it's as ambitious a programme as we've seen from a New Zealand
government in both economic and social terms. And we're both
committed as parties to deliver it.
QUESTION:
Prime Minister, you said the discussion on defence was robust. Did
you make...
PRIME MINISTER HOWARD:
No, I don't think I used the word robust. That's yours Catherine.
I think I said frank or candid, but...
QUESTION:
Did you actually discuss General Baker's comments? Did you seek
to clarify them and did you talk directly about New Zealand's
defence funding?
PRIME MINISTER HOWARD:
We had a discussion within the parameters that I've already described.
And the view I have is that what New Zealand does in the area of defence
is a matter, of course, for the New Zealand Government.
QUESTION:
Well, in that case, did General Baker go too far?
PRIME MINISTER HOWARD:
Well my answer is that I've given it.
QUESTION:
Mrs Shipley, given your discussions with Mr Howard today on the economic
effects of the Asian events, what do you think the Asian crisis will
do for New Zealand and the growth of the region?
PRIME MINISTER SHIPLEY:
At the moment the best advice we've got is that we're still
expecting around 2.7 per cent growth in our country. I think it's
very soon to try and make an actual assessment and the Cabinet is
looking at contingency plans for if the growth tracks and tax tracks
alter dramatically. It's very likely, in our opinion, that the
secondary effects of this may not be seen until next year rather than
this year. But the New Zealand Government has been kept very well
informed. At this stage, because of some other domestic activity including
tax cuts and a de-mutualisation of AMP, we believe that domestic economic
growth will still be strong in New Zealand which, in fact, will allow
us to ride-out some of the pressure that the Asian change will impose.
QUESTION:
Mrs Shipley, the Australian Federal Treasury now believes that the
Asian downturn will knock 0.5 per cent off Australia's GDP growth
in the next financial year. Will this have an on-flow impact to New
Zealand?
PRIME MINISTER SHIPLEY:
We have a range of contingency plans both ways, in terms of 0.5 or
one per cent. And as I said to you, the Ministers are being kept well
briefed on this matter and we do have contingency plans for spending
tracks if they are required. The Government does intend to keep the
New Zealand books in surplus and we have plans at foot that, if necessary,
can be implemented in order to achieve that.
PRIME MINISTER HOWARD:
And I don't think, just the sake of complete accuracy, the Australian
Federal Treasury did say that. I think what the Australian Federal
Treasury said was a number of things and that was the interpretation
put on it by the Sydney Morning Herald if I'm correct.
Thank you.
[Ends]