E&OE................................................................................................
PRIME MINISTER SHIPLEY:
It's been our great pleasure to welcome Prime Minister Howard
to New Zealand for, what I think he established as a tradition of
these bilateral meetings each year in the respective countries. As
we mentioned in Queenstown the discussions have been wide-ranging,
they've been extremely useful from my own point of view and from
the point of view of my ministers. I'm pleased to report that
the CER relationship is in extremely good heart and there were no
major outstanding issues that required the intense attention of the
prime ministers.
But one of the very useful suggestions that Prime Minister Howard
has come up with, and our government has agreed, in order to pick
up some of the ideas that have come through the weekend's discussions,
is that we should establish or explore how we can establish a prime
ministerial taskforce that deals with the minor outstanding matters
to do with CER. And also investigate the strategic steps forward as
to where CER might go, beyond where we are today. I think that's
an extremely useful idea and is perhaps a good way of taking the next
step on what is a very important relationship, certainly from New
Zealand's point of view.
So Prime Minister welcome again to New Zealand. I valued your insights
on your own economy and its performance, on Timor and on the many
other issues that we've been able to discuss and in particular
the drug issue in relation to New Zealand and Australia and again
I appreciate your willingness for us to continue to collaborate and
talk about and share our knowledge on this matter.
PRIME MINISTER HOWARD:
Well thank you very much. Can I say for my part how much my wife and
I and other members of the party have enjoyed the hospitality of New
Zealand and New Zealanders, Jenny. It's been a very enjoyable,
a very productive few days. It is a very close relationship, but like
all close friendships it needs to be kept in good repair, and the
best way of doing that is for us to have this regular kind of contact,
to share experiences. I agree very much with the emphasis you have
placed during the weekend on not only CER but also optimising the
opportunity that the APEC meeting here in New Zealand this year presents.
We do need, in the interests of both of our countries, a broadly based
WTO round. In the long run that's the best trade outcome for
Australia and New Zealand. We will bend all of our efforts to achieve
that particular goal. Timor will be the number one foreign policy
challenge for Australia and of particular importance to the entire
region over the next year or two and it was good to have the opportunity
of discussing those things over the last couple of days.
But what I found particularly useful again, as I did two years ago,
was the chance of talking to virtually the entire New Zealand Cabinet
and to have the opportunity at a face-to-face level of exchanging
our experiences. I've noted the significant improvement and very,
very strong performance of the New Zealand economy over the past few
months. I am of course a long-time admirer of many of the economic
reforms that have been undertaken in this country and particularly
of course the labour market reforms and in the 1980s taxation reform,
of which I have a passing acquaintance in Australia. And therefore
we have a lot of experiences to share. I should say that during the
whole time that I've been here nobody has complained to me about
the GST. And I say that for the consumption of the Australian audience
present. Everybody seems very comfortable and relaxed about the GST
here in New Zealand, and not surprisingly. It was a very, very intelligent
economic reform in the 1980s for New Zealand, as it is in the 1990s
for Australia.
JOURNALIST:
Prime Minister [inaudible]
PRIME MINISTER SHIPLEY:
Our own foreign policy position is of course our own. The discussions
over the weekend were how the transition that may occur over the coming
months might be managed and what role New Zealand might play in assisting.
I don't want any confusion to be had about the two issues. New
Zealand always has its own foreign policy position. My comments in
relation to taking advice from Australia is on what particular involvement
might be required to assist in managing any issues that emerge. The
question that was put was about peacekeeping assistance. Both prime
ministers made it clear, it's very premature to be speculating
on that matter, but because Australia is so much closer to the real
issues that may emerge, we would look to them for advice on how we
might logistically assist. On the issue of foreign policy of course
New Zealand makes its own decision, and has its own position.
JOURNALIST:
Do you accept that the Australian [inaudible] and has had in the past
different attitudes to ......
PRIME MINISTER SHIPLEY:
Of course. But there's an emerging situation that now requires
a response, and that was the focus of the two prime ministers'
discussions over the weekend.
JOURNALIST:
Mr Howard, on the drugs issue, how do you plan to take advice from
the FBI?
PRIME MINISTER HOWARD:
Well I'm going to take the opportunity of the visit to Australia
of the Director of the FBI, I think he's seeing me on Friday,
to explore a number of areas. Greater international cooperation between
law enforcement agencies - and one of the benefits that have already
flowed from the extra resources we have put into law enforcement is
that we've had more AFP presence in source countries and that
has aided the process of interception. We obviously want to share
the experiences of the FBI in relation to the role of federal agencies
in combating the drug menace. Many of the programmes that have been
undertaken in the United States in recent years in relation to law
enforcement and rehabilitation have been similar, not identical to,
but similar to many of the things we're endeavouring to do and
there is a story to be told about some of the successes in that area,
which I think is relevant to the debate in this country, I think we
can in Australia, and indeed in New Zealand, all countries are concerned
about the drug menace and we need to share our information and share
our understanding.
JOURNALIST:
Mr Howard you indicated you're putting more resources into fighting
drugs [inaudible].
PRIME MINISTER HOWARD:
Well it is not necessarily such an indication, but I don't rule
that out. But I want to make it clear that we have put a lot more
resources into this issue than any other national government. But
having said that, I do not want to politicise it in a party political
sense. I'm happy to cooperate with a Labor premier anywhere in
Australia, with a Coalition premier, with the law enforcement agencies
of Australia. This is something that ought to be above and beyond
party politics. It's something that ought to be, as far as possible,
separate from the heat and burden and hurly burly of election campaigns
because it is something that we need to work together very closely
on and that is the aim I have and I'll sit down as readily with
Mr Carr as I will with Mr Kennett or Mr Court to try and work to solve
this problem.
JOURNALIST:
Prime Minister when you've got the prime ministerial taskforce
on CER set up, will it be, who will comprise it, will there be business
representatives on the taskforce and would it be right to interpret
this as a [inaudible].
PRIME MINISTER SHIPLEY:
I think on the latter point they were both very small issues, I can't
make this clear enough for you. The issues outstanding in CER are
minor but need to be solved and both prime ministers I think felt
that this meeting this year was not dominated by major things that
were causing a huge conflict but there are a few things that basically
come up every year and it seems that we need to think in a different
way. Having spoken about it over the weekend, the Prime Minister suggested
this approach and we both agreed that we would look at it. We also
agreed that that same group of both ministers and perhaps officials
can look strategically ahead and take this concept of where to next
for CER. We've only agreed less than half an hour ago that this
should be investigated as to how we can establish it and we will of
course come back to you when we get the framework and the agenda issues
fixed.
JOURNALIST:
[inaudible]
PRIME MINISTER SHIPLEY:
Again, I don't think we should speculate until we've had
an opportunity to design this commitment. We agreed, we think this
is a better way to deal with the final issues to do with CER and the
future opportunities and we're going to work our way through
how that might be done.
JOURNALIST:
Mr Howard what were the issues, the minor issues that Prime Minister
Shipley [inaudible]
PRIME MINISTER HOWARD:
Well there's still debate about the Social Security agreement,
there's debate about the cost to business of the foreign investment
approval processes of the two countries. I don't think a New
Zealand investment proposal in Australia has been rejected for a decade
or more and I don't think one coming in the other direction has
been rejected for a long time either. There are some associated considerations
for Australia in relation to that in terms of our foreign investment
association with other countries, particularly Japan. I am in favour
where possible of getting rid of regulatory approval processes. I
have an inbuilt prejudice against them unless there's a clear
national benefit in having them, and that's one of the issues
you have a look at. We'd like to see just a tad more progress
on the social security discussions, but look there aren't big
issues.
But the other point that the New Zealand Prime Minister makes and
I think is very important, is how do you broaden the horizons of CER.
And we talked about that over the weekend and that is something also
that this group could have a look at and if you have a prime ministerial
focus on it, it goes above and beyond the sort of one by one exchange
at a particular portfolio level.
JOURNALIST:
Mr Howard, you say that East Timor will be Australia's number
one foreign policy issue over the next 12 months or so. How concerned
are you that East Timor could disintegrate and what would that mean
for Australia?
PRIME MINISTER HOWARD:
Well Alison, I think the most important thing for me to do at the
moment on East Timor is to remind all of those who have responsibilities
of their responsibilities. To explain to the Australian people what
is at stake, to encourage the Indonesians in particular to an orderly
handling of the problem, and also to try and persuade the leaders
of the East Timorese people of the advantages of a progressive handling
of the issue and not a precipitive one. I don't want to start
talking in the language of disintegration and fragmentation, that's
not helpful. What we want is of course the will of the East Timorese
people to be respected, but we also believe that we have a responsibility
to urge upon everybody the desirability of having a period of autonomy
before independence, and that's what I've been doing now
for several weeks.
I've never said, and I never will say that independence should
be denied if that is clearly what they want. But I will point out
the consequences of that if it occurs precipitively. And I am conscious
of our responsibilities. Not in a sense that I don't want Australia
to shoulder those responsibilities, I do. And I will advocate them
and I will advocate the commitment of the resources needed to discharge
those responsibilities.
But I think it's very important when you're dealing with
a foreign policy issue like this, it's very important to explain
above and beyond the rhetoric of the issue what is involved if a certain
development occurs. I mean it's all very well for people to make
speeches about independence. It's necessary for prime ministers
to explain what that means if it happens too quickly and what the
responsibilities of the Australian population may be if its occurs
too quickly. We have a long association with East Timor, stretching
back to before World War II and it's an issue that's occupied
a lot of column inches in our newspapers and so forth over the years.
Now we're getting to a situation where the circumstances are
unfolding in front of our eyes and I want the Australian people to
understand what is involved, not because I'm going to be begrudging
in our response but because I want people to understand what's
involved.
JOURNALIST:
Mrs Shipley, would you like to [inaudible]in East Timor ...
PRIME MINISTER SHIPLEY:
It's premature to speculate on this and I don't think that
we should try and beat history. I mean, this is an extraordinary set
of circumstances that currently prevail. I think we must wait and
see what occurs. Of course we hope for the best outcome so that no
peacekeeping force or any other type of intervention will be required.
And I don't think we can get ahead of ourselves until these events
unfold.
JOURNALIST:
Mrs Shipley, what do you think is the most valuable thing you've
learned from Mr Howard about the drug issue and how Australia has
dealt with that?
PRIME MINISTER SHIPLEY:
Well, it's been a very broad ranging discussion. I think what
it's confirmed for me is that there are no soft options here.
Prime Minister Howard and I share the view that just because you've
got a problem, the way to solve it is not necessarily becoming more
liberal but rather trying to find ways that both educate, treat people
who are clearly ill and deny access where that's possible. That's
consistent with my own view and generally consistent with the public
policy position in New Zealand. I've been very interested in
the phenomena of whether the heroin market's growing because
whether we like it or not New Zealand often follows Australia. At
this stage there's not a major heroin market in New Zealand but
there are issues, obviously, that I want to be aware of so that if
they emerge we know what they look like and we also know what to do.
JOURNALIST:
Prime Minister, in the past much has been made of trans-Tasman rivalry
and that certainly was apparent to many of us in the early days of
prime ministerial relationships. Now, you Mr Howard with Jim Bolger
seemed to get on quite well and now you're getting on quite well,
what's [inaudible]....
PRIME MINISTER HOWARD:
I'm just an easy going bloke. I think both of us have recognised,
as I did with Jim Bolger, that this is a relationship that
has not only a wonderful past but it also has a very special future.
And both of us have a responsibility, whatever our political beliefs
may be, and of course as you're aware Mrs Shipley and I, as I
did with Mr Bolger, share a broad coincidence of political belief
on the centre right of politics and we're both very proud of
that and of the common political philosophy and values that we have.
But irrespective of that, it's a very important relationship
and I don't see it ever in terms of rivalry, I see it in terms
of working together to achieve common goals and common outcomes. One
of the things that has struck me over the weekend is the reminder
that over the next two or three years New Zealand will be hosting
APEC, New Zealand will be hosting the President's Cup
I'm sorry, the America's Cup we hosted the President's
Cup last year, that's right. We will be having the Olympic Games,
the Centenary of Federation, the Darvos meeting in Melbourne in the
year 2000 and in the year 2001 we'll be hosting CHOGM. Now what
you see there will be a common world focus on our two nations, on
our two societies and that is a contemporary reminder that the relationship
is not all in the past. Important and treasured and valued and emotional
though that may be, and long may it always remain so, but it's
also the future of the relationship is a very important one. And I
see it is as a prime responsibility of an Australian Prime Minister
to work in a cooperative way and I've never seen the relationship
in other than a friendly fashion. And may I say I have, on a personal
level, enjoyed immensely the friendship I developed with Jim Bolger
and I have, I hope, with Jenny Shipley.
JOURNALIST:
Why do you think your predecessor's made [inaudible]
PRIME MINISTER HOWARD:
Go and ask them.
JOURNALIST:
How would you sum up CER now?
PRIME MINISTER HOWARD:
Well, I think CER has been a great success. I mean, we have been able
to negotiate through difficulty where it's occurred but overall
I think it has been a huge success. I think it's been beneficial
to both countries. In retrospect, I give tremendous credit to Doug
Anthony, the Australian Deputy Prime Minister who argued long and
hard in Australia to win acceptance of it against the opposition of
some people who were being rather short-sighted at the time. And I
think it has been a great success and I think it will continue.
JOURNALIST:
What strategy have you come up with for making sure that APEC works
and that you can achieve [inaudible]
PRIME MINISTER HOWARD:
What are my I'm sorry, directed at me what are
my hopes about, how do I feel we'll go?
JOURNALIST:
The strategy.
PRIME MINISTER HOWARD:
The strategy?
JOURNALIST:
For APEC.
PRIME MINISTER HOWARD:
Well, the most important thing is to get the member countries of APEC
focused on the importance of maintaining the ultimate goals of APEC.
It was hardly surprising at the last meeting that you should have
some nervousness given what countries like Indonesia and Thailand
and Korea had gone through. And I'm hopeful that at the next
meeting there'll be more of a focus on the future rather than
the present in APEC. Mrs Shipley will be in the Chair and we'll
be there to help in any way we can to achieve the goals of APEC. And
I will, for Australia's part, be putting the view to the member
countries of APEC leading up to it that we need to focus on the benefits
of freer trade, as I prefer to put it, within the region and within
the grouping because there are great benefits in freer trade. And
we've found that in Australia. New Zealand has certainly found
it. I mean, New Zealand has been a trailblazer in freer trade around
the world and deserves a lot of credit for it.
JOURNALIST:
Mr Howard, there's a report out today on business tax which includes
a proposal on capital gains and a threshold [inaudible]
PRIME MINISTER HOWARD:
Is this the Ralph Report?
JOURNALIST:
Yes, it is.
PRIME MINISTER HOWARD:
I've heard of it but I've not read it.
JOURNALIST:
[Inaudible] how comfortable would you be [inaudible]
PRIME MINISTER HOWARD:
Well, Tony, I would strongly support a review of the capital gains
tax designed to ensure that Australia remained a country where it
was very attractive to invest, where small investors were encouraged
to take risks and those at the leading edge of technology in particular
were encouraged to take risks. One of the things that countries like
Australia and New Zealand must always do is to ensure that the brightest
and the best of the people with intellectual capital, that they are
not prevented from realising the full potential of their intellectual
capacity and their inventions and the product of their research for
want of a more encouraging taxation climate. Now, they're the
sorts of things that I would like. But can I also say, I'm not
going to support a capital gains tax