E&OE ..........................................................................................
PRIME MINISTER HOWARD:
Well, ladies and gentlemen, I would like to welcome you
to this joint news conference. Can I say on behalf of the Australian Government
how delighted I am to have the new Prime Minister of New Zealand, Helen
Clark in Australia undertaking her first visit as Prime Minister of New
Zealand.
It has been an opportunity for both of us to reaffirm the
importance the two governments attach to the relationship between our
two nations and our two societies. Australia and New Zealand have a long
history together and that history of course, and the momentum of the relationship
involved in that history of course, propels itself forward irrespective
of who is in power in either country. But it is also important in the
context of that that governments keep the relationship in good repair.
And just as I sought and obtained a very good basis of relationship in
working with the two former prime ministers of New Zealand with whom I
dealt, so it is with the new prime minister and I welcome her very warmly.
I thank her for the very direct and constructive nature of the discussions
that we've had today which have covered most areas of the bilateral
relationship.
We'll be releasing a report to both of us from our
respective officials regarding progress made and rising out of the joint
prime ministerial taskforce established by Mrs Shipley and myself last
year. And I am also pleased to report that agreement's been reached,
an agreement relating to child support and that is to be signed shortly.
We've also both accepted the recommendations of our
officials concerning the discussions on the social security arrangements
between the two countries and our discussions will be undertaken between
the respective ministers on both sides of the Tasman on that.
I am also very happy to say that both of us will be in Gallipoli
on Anzac Day this year. And it is also expected, and I look forward to
the event that the New Zealand War Memorial in Australia will be unveiled
on the eve of Anzac Day in the year 2001, which of course is the Centenary
Year of Federation in Australia. And those two events are symbolic, but
nonetheless a very important symbol of our, a reminder of our shared history
and the determination in relation to those matters that the association
continue in a very open and very well developed way.
But I really am very pleased to have had the discussions
and to take the opportunity so early in the term of the new New Zealand
Government to reaffirm the very strong commitment of the Australian Government
to the association.
PRIME MINISTER CLARK:
Thank you. We have had a very warm welcome from John Howard.
This isn't the first time that we've met. I made the observation
to Mr Howard that when you're in opposition for nine years, a lot
of people treat you as though you're dead. That was not the case
with John Howard, I met him three times while I was Leader of the Opposition
in New Zealand and that's given a good basis for us to start our
work as prime ministers today.
This is also probably the first of four times that we will
meet this year. Because there is not only Gallipoli coming up, which is
of great significance to both countries, but also the meetings of APEC
leaders in Brunei and then the Pacific Island Forum later in the year.
So there is going to be a lot of contact.
We've had a good discussion that's ranged over
many issues that Mr Howard mentioned. I've briefed him on our current
defence planning intentions. We've talked about the terms of reference
for the review of issues arising out of Trans Tasman migration and the
social security issues there. We've had a brief discussion on matters
relating to civil aviation. Certainly the Anzac Memorial which we're
committed to following through on and we hope to be able to have a ceremony
around that in Canberra next year.
So, over all, I think it's got off to a good start.
We're very pleased to see the child support payment arrangements
coming to finality. And hoping to be able to have the practical arrangements
underway around the middle of the year. In essence we want to run a no-surprises
policy with the Australian Government and I am sure that will be reciprocated.
And on defence, can I say we support the ongoing very close
relationship the two countries have enjoyed for a century. Nothing has
changed about that. Whatever semantic arguments one might pick through
the media are we're committed to the high level of co-operation that
saw us work so well together in Timor and I am sure there will be other
opportunities for us to show in a practical way just how important that
is to us.
JOURNALIST:
Are you happy with the commitment from the New Zealand
...[inaudible]...?
PRIME MINISTER HOWARD:
Well, the level of commitment of defence, for defence, is
a matter for the New Zealand Government. New Zealand is a sovereign, independent
country it makes its own decisions and we accept and respect those. Naturally
for a whole host of reasons we would like the strongest possible defence
commitment and provision from New Zealand. And like any other country
New Zealand recognises that there are strategic and operational consequences
attached to any particular decision on defence. I mean it is no secret
that Australia places a different and lower priority on the defence association
with the United States than New Zealand. Now that is a matter of open
record and understanding. That doesn't prevent of course the two
countries working together very closely as we did in Timor.
I mean I've said on a number of occasions that the
most reassuring element in many respects of Australia's commitment
in East Timor was the ready and very strong support from New Zealand.
It was New Zealand's largest deployment overseas since World War
II, so, and Australia welcomed that. And the professional harmony between
the command and the men and women of the two forces was very much in evidence.
It was certainly related to me when I was in Timor and it has been relayed
since.
But we have some different perspectives and we understand
the consequences of different provisions. I indicated to the Prime Minister
that it would be Australia's intention to increase defence expenditure
beginning from the year after next. The size, shape and disposition of
that increased expenditure is something that we're yet to determine.
We had a very lengthy discussion about defence matters in our National
Security Committee Cabinet on Monday along with our defence and strategic
advisers and it is an issue that is receiving quite a lot of attention
in Australia.
But we have to be open and candid about these things. We
share a lot of, not only history, but we share a lot of interests in common.
But there are going to be points at which we put an emphasis differently
from New Zealand and New Zealand different from us. And it is far better
to recognise that from the very beginning and be candid about it and get
on with the association and I am encouraged by what the Prime Minister
has said both here and also earlier, and we understand each other perfectly
well.
JOURNALIST:
Prime Minister how will that expenditure be increased
and what particular areas would ...?
PRIME MINISTER HOWARD:
Well I've just said that we haven't decided
that. We have some ideas, but we've made it very clear that, I mean
I've said this before on a number of occasions, perhaps some haven't
heard it before but anyway I am saying it.
JOURNALIST:
And is that going to increase differences though between
Australia and New Zealand?
PRIME MINISTER HOWARD:
Well no I don't think. No, no look, I've just
said that we have a different, you know we have some differences of emphasis,
well on the American association obviously I mean that has a history to
it. And we respect the New Zealand position, we understand it. they respect
ours.
JOURNALIST:
Prime Minister Howard on the social security arrangements.
Did you have a concern basically that New Zealand was not contributing
enough?
PRIME MINISTER HOWARD:
All that happened today was that we agreed on the terms of reference
for a discussion. And there is a history to this like all of these things.
We're going to have a talk and we will see where we get.
JOURNALIST:
What are your concerns?
PRIME MINISTER HOWARD:
I don't have any concerns beyond the desire to see the ministers
get together and see how they progress the discussion and the issue in
accordance with the terms of reference.
JOURNALIST:
Does one of the terms of reference limiting trans-Tasman migration.[inaudible]...?
PRIME MINISTER HOWARD:
Look, we in Australia want an open welcoming association with our friends
in New Zealand. Obviously every country has a right to look to the net
sort of economic and other outcomes and New Zealand has views on that,
Australia has views on that, lets not get excited and create a difficulty
that doesn't exist, but we are going to look at..
JOURNALIST:
[inaudible] any consideration for limiting trans-Tasman...?
PRIME MINISTER HOWARD:
We would not want to behave in an arbitrary way in relation to that.
We like the current arrangement on a people to people basis. And its proper
and right and the expected thing in an association as old and as important
as our with New Zealand that there should be a freedom of movement that
perhaps doesn't exist between other societies, but there are economic
consequences of that. And we are going to examine it so I am not going
to get into the business of making any other declarations.
PRIME MINISTER CLARK:
Can I say we put a very high priority on the free labour market between
the two countries and I think that when you see the terms of reference,
you will see that they are very broad and enable us to look at a whole
range of issues and one of them I will put on the table is net economic
benefit because as I said several times in the last week, we know we are
losing a lot of our best and brightest to Australia, which is certainly
of considerable benefit in the growth and development of this country,
so we have to balance some of these things out. But there is no sense
of aggravation about this, simply a realisation that the way the social
security agreement worked in the past has probably run its course and
that lead the two governments to agree in the last couple of years that
they would move towards paying a flat global sum and get together to talk
about the longer term arrangements and that is exactly what we are doing.
JOURNALIST:
Mr Howard there are four hundred thousand New Zealanders living in this
country in the upper income stream. There's an argument in New Zealand
why should our Government pay your government anything given that they
are looking after themselves through the taxation system.
PRIME MINISTER HOWARD:
Well I'll leave it to the political figures in New Zealand to deal
with those arguments in New Zealand. Suffice it to say that we have terms
of reference that will enable all points of view to be considered, on
both sides of the Tasman. New Zealand economic arguments as well as Australian
economic arguments and I am quite certain that commonsense will prevail.
JOURNALIST:
Mrs Shipley...
PRIME MINISTER CLARK:
Excuse me?
JOURNALIST:
Prime Minister, with increased Australian Defence spending do you concede
that there will be a very large gap now between the capability even now
and in five to ten years time between New Zealand and in Australia and
given Professor Dibbs recent comments do you feel that New Zealand can
hold its own in the region and what would be the implications for the
New Zealand capability?
PRIME MINISTER CLARK:
I think New Zealand has to work out how it makes an effective contribution.
We also have to take in to account our capacity to pay. The defence planning
of the previous government last calculated its capital expenditure and
budgets on a US, New Zealand dollar rate of 69 cents. When I last looked
it was 48 and whether that has fallen again, given what I read about the
Australian dollar to which we so closely linked today, I don't know.
In essence we are trying to see that we have a coherent defence plan which
we can afford. There are only 3.8 million of us. We are used to having
a high degree of interoperability with Australia. Not just through the
bilateral relationship and exercises but also through very regular contact
in the five power defence agreement. We are going to keep our end up but
we will have to work out whether a small country can in the future try
to be quite as ambitious as we have been in the past on better exchange
rates and higher levels of prosperity.
JOURNALIST:
What has been your response to Mr Howard's urging you to make the
maximum possible commitment to defence. Have you said anything to him
about not just maintaining defence spending but in future possibly increasing
it ...
PRIME MINISTER CLARK:
I wouldn't put words in Mr Howard's mouth as I think your question
did. We have a desire to work very closely on these issues. We will be
keeping each other informed about each other's defence reviews. New
Zealand wants to keep the high level of interoperability that it has had.
That means for us quite a lot more investment forthcoming in the New Zealand
army because we feel if there is one thing that has let us down a little
in our overseas deployments, whether we are talking Bosnia, Bouganville
or Timor, it is the antiquated nature of the New Zealand army's equipment
and that is right at the top of our priority list for significant expenditure.
JOURNALIST:
What's the reason for your shift away from your predecessor's
commitment to being a single strategic entity [inaudible]?
PRIME MINISTER CLARK:
I have looked at quite a lot of the history of this in the last few days
and what I find is that that was a phrase that had some currency, although
heavily qualified, in the early 80's and then largely disappeared
from use, although it popped up in a communique between the New Zealand
and Australian defence ministers in 1998. Last year there was a very full
report from the Foreign Affairs and Defence Select committee of the New
Zealand parliament, which made the blunt statement that the two countries
were not a single strategic entity. For the reasons Mr Howard alluded
to, the Australians have a different relationship with the United States.
That leads them to project differently. Australians are a middle sized
power, we struggle to get into the small power category. Australia has
an Indian ocean border. We do not. We're more focused towards the
South Pacific than to the west of Australia, so all that will always make
for some distinction of view. But none of that detracts from the fact
that the two countries want to and always have worked very closely together
and will continue to do so.
JOURNALIST:
Do you believe that New Zealand Defence budget gives it any credible
defence capacity in South East Asia at all given for example the inability
to provide air support to your troops in New Zealand and secondly are
you giving an ironclad commitment that if you cancel the F-16s you will
spend that money on defence, that that won't lead to a saving in
the defence budget.
PRIME MINISTER CLARK:
We are not looking to cut the Defence budget. We are trying to stop it
spinning out of control, given the very sharp deterioration in the New
Zealand currency over the past couple of years. What we want is the defence
force that can make a credible contribution, we will want to make that
contribution. We have had considerable praise which is much appreciated
from Australia on the contribution in Timor. But in all honestly, we feel
it could have been better if our army had been better equipped. So that's
where we are looking to improve our performance.
JOURNALIST:
Do either of you believe in the notion of a common currency?
PRIME MINISTER HOWARD:
No but I'll answer that by saying that it's
not been undertaken in any of the discussions I've had with New Zealand
prime ministers. It didn't occur to me in the lead up to this discussion.
I don't think it is going to occur to me tomorrow or next year.
JOURNALIST:
Have you got any . . .
PRIME MINISTER CLARK:
I feel the same.
PRIME MINISTER HOWARD:
Okay, thanks a lot. Thank you.
[ends]
Report
to the Prime Minister on Australia-New Zealand Bilateral Economic Relations