PRIME MINISTER HOWARD:
Well morning ladies and gentlemen. I'm delighted again to welcome the Prime Minister of New Zealand to Australia. The relationship between our two countries remains very close and in the time that I've been Prime Minister and particularly in the time that Helen and I have shared our respective positions, or occupied our respective positions, we've maintained the practice of bilateral visits each year, I was in New Zealand last year for a bilateral visit, and I'm delighted to have Helen Clark here in Canberra today.
I'd like to start this news conference by congratulating New Zealand on the clean sweep of the Academy Awards, there's a saying in our language that something's bigger than Ben Hur, this was bigger than Ben Hur and it was an extraordinary achievement and I know has bought a lot of satisfaction to New Zealanders, not only in New Zealand but around the world.
On a more sombre note I'd like to express the concern of the Australian Government and the Australian people of the Government and people of New Zealand for the very severe floods that have been experienced and during our discussions I indicated that if there was any assistance of any kind that the Australian Government could offer in relation to flood relief and mitigation we would be very ready to do so.
Our relationship has many strands to it, ties of history and of ethnicity and shared values and shared approaches to many of the world's challenges. We, looking at the relationship in a modern context, we are particularly keen at a prime ministerial level to maintain the momentum towards the development of a single economic market comprising Australia and New Zealand. We are already a long way down that path and recently the New Zealand Finance Minister, Dr Cullen, and the Australian Treasurer Mr Costello met and explored further ways, particularly in the areas of competition where this goal could be further advanced and the Prime Minister and I give very strong support to that.
We are also continuing to make common cause in relation to world trade reform. It's difficult, the intransigence of the larger trading blocs, particularly the European Union and the apparent reluctance of other big agricultural subsidisers, the Americans and the Japanese in this area, means that we have to work harder through the Cairns group to revive Doha and to keep it very much on track. But both of us remain very, very committed to that.
We took the opportunity of discussing developments in the Pacific, we welcomed the progress being made with the eminent persons group that was established at the last Pacific Forum Meeting in New Zealand and I hope that we will be able to arrange at the initiative of the New Zealand Prime Minister a brief meeting of forum leaders in New Zealand which I'd be very happy to attend to deal with that particular report.
But I've said before that I believe we've entered a new era as far as Pacific co-operation is concerned and that is evidenced by the tremendous progress we made in the Solomon Islands, quite outstanding and it's an example of Pacific co-operation, it's not an example of big brother activity by Australia or New Zealand of working together with our friends and it's a metaphor in a way or a template for what can be achieved in the future working together.
But can I again Prime Minister welcome you to Australia, and renew my personal commitment to the strongest possible bilateral relationship between the Anzacs.
PRIME MINISTER CLARK:
Well thank you John and you've given a full summary of the issues which we've discussed today. This has been the fifth formal bilateral we've had since I became Prime Minister, but I would say over the past four years and three months we've probably met somewhere by 20, 25 to 30 times. We are on a circuit with many prominent and national associations which see us talking frequently and that is undoubtedly one of the many reasons why we don't meet today with anything controversial on the agenda, but really a shared agenda in a lot of areas, both bilaterally on economic developments and also around our region.
We have been very supportive of the work being done by the Australian Treasurer and New Zealand Minister of Finance on developing the single economic market. It's clear that our relationship has now gone way beyond a Free Trade Agreement into single economic market issues and the work programme that the Treasurer and the Minister of Finance from New Zealand have set out on banking supervision, on competition law is one which takes us further along that road to the single economic market. We're very supportive of that.
Obviously we've spent quite a bit of time on the trade issues today, the Cairns Group meeting which Mark Vaile was at with Jim Sutton just last week I think has put some new impetus in that group's advocacy for the WTO round. We each have our own FTA priorities running and I congratulate you again on your success, particularly in the presidential election year in the US with the agreement with that great economy. We are working on the Thai FTA at the moment, we're making good progress as I know you are in talks with China, we are both very openly and outwardly orientated and see the benefit of our economies which are go ahead and growing being linked to other economies which have a lot to offer.
The discussion on the Pacific has been particularly useful, New Zealand has been facilitating the eminent persons group review of the Pacific Island Forum, launched last August when we met in Auckland. It is coming together very, very well to the extent that I believe that to keep the momentum up it will be important to bring the leaders together in the coming weeks so that we launch the Secretary General and his people in Suva on a number of important projects to have them well under way by the time we get to APIA in August. So we will be making best endeavours to get a day for that retreat.
We've also discussed the success of the Solomon Islands operation. I know that Australia is on a track to be there until July and we will want to be there with you and then to continue to see the broader aspects of the Solomons project through.
So it's been a good and substantive discussion, we'll carry on over lunch, but it's a pleasure to be back in Canberra again for the talks.
PRIME MINISTER HOWARD:
Thank you. Questions?
JOURNALIST:
... Mr Howard's offer of any flood assistance and number two did you discuss the Free Trade Agreement that Australia has with the US and are you seeking Australia's support in helping lobby for a New Zealand deal with the US?
PRIME MINISTER CLARK:
On the floods John Howard conveyed as he has again now Australia's sympathy for the damage which has been done. We have our recovery plans now going into operation, so we haven't asked for assistance. But I know the Trans Tasman spirit is such that if there was any need it would come right away just as we've responded in the past with the appalling fires that Australia's had by sending firefighters.
Secondly on the US FTA, our Trade Minister was in the United States last week talking with the trade representative. New Zealand is continuing to lobby and build its constituency in Washington and among the business community and obviously it's our aspiration that where Australia has gone, New Zealand will in time follow.
JOURNALIST:
On the Free Trade Agreement, Mrs Clark, Australia's made concessions to the US on its foreign investment stream rules . Does New Zealand take the view that those concessions under CER should now be extended automatically to New Zealand?
PRIME MINISTER CLARK:
I don't come with an opinion on that. It is, of course, the case that the full text of the FTA isn't yet out so people haven't been able to analyse it in great detail.
JOURNALIST:
Mr Howard, on that full text of the FTA - are you expecting it to be released today? And if not, what are the technical problems that are holding it up?
PRIME MINISTER HOWARD:
I don't know whether it will be released today or not. But they are as Mr Vaile has described them. And, I mean, let's preserve a sense of proportion - whether it's out today or tomorrow or Friday is hardly going to matter in the great scheme of things. It hasn't altered the fact that we have negotiated an agreement and it will be out shortly, it may be today, it may be in the next day or two, but it's not going to alter anything.
JOURNALIST:
Just on the issue of unauthorised boat arrivals and New Zealand willing to take some of the case load from Nauru and can I ask Mr Howard whether you're attracted to a proposition to (inaudible)... the changed migration zone from the mainland from the low to the high water mark?
PRIME MINISTER CLARK:
Well, as you would be aware, New Zealand has endeavoured to assist Australia to resolve these very difficult problems and we will continue to endeavour to do that and to respond to any request that the UN high commissioner for refugees makes. We know there are various re-evaluations going on at the moment and it's really a matter now of what the outcome of those is.
PRIME MINISTER HOWARD:
Could I just say on that issue that I am very appreciative of the helpful and constructive and understanding attitude that New Zealand has taken over a number of years in relation to this issue and I've had occasion in the past to express my thanks to the Prime Minister for that and I do it again this morning. You asked me a question, I think, about the high and low water marks and the migration zone. There's no proposal in front of the Cabinet or the Government in relation to that.
JOURNALIST:
Mr Howard, on the wake of this opinion poll it puts Labor well ahead. Does that correspond with your assessment on [inaudible]
PRIME MINISTER HOWARD:
Well, there was a poll last week that told a somewhat different picture. I'm not going to comment on each of them.
JOURNALIST:
[Inaudible] issue, a TV3 poll out tonight shows a ten per cent increase for support for the national Opposition. Are you concerned that they have all the [inaudible] right now?
PRIME MINISTER CLARK:
No, as I've said on many occasions, there was a speech around the single issue timed in the run up to the annual silly season around Waitangi and that gained some momentum. I've also acknowledged that there's a lot of genuine Kiwis who have raised various concerns and the Government is listening and endeavouring to address them.
JOURNALIST:
Do you feel like you have something in common with Mr Howard, both Prime Ministers for a long time, both face some serious threats right now?
PRIME MINISTER CLARK:
Well, I've always felt that John Howard and myself undergone a long apprenticeship to get to the positions that we got to and I think we identify in each other a characteristic of battling to get to the top and then working hard to stay there.
JOURNALIST:
[inaudible]
PRIME MINISTER HOWARD:
I beg your pardon?
JOURNALIST:
What's the economic [inaudible] RBA's decision to leave rates unchanged?
PRIME MINISTER HOWARD:
Well, I don't know that I will try and read the mind of the Governor or the mind of the board. It's a decision that I note and I'm sure will be welcomed by home borrowers, particularly. It indicates the continuing stability of the Australian economy. But I don't think we should get too hung up for momentous comments on each tiny movement in rates either way or non-movement. I think that's blowing these monthly things out of all proportion. The fundamentals of the Australian economy sustain and validate a low interest rate structure, but the question of tiny movements either way at particular times ought not to be the subject of endless economic seminars.
JOURNALIST:
[inaudible] on Iraq. In the new inquiry which you have agreed to, will you allow that inquiry to examine suggestions of possible political pressure on intelligence agencies and also government exaggeration of views of Australian intelligence agencies that arise from the joint parliamentary committee report?
PRIME MINISTER HOWARD:
Well, the terms of reference will reflect the recommendation of the committee. We are doing exactly what the bipartisan committee recommended. The committee that is chaired by David Jull of the Liberal Party and included the two most credible figures on intelligence and defence matters in the Australian Labor Party, Robert Ray and Kim Beazley. And we'll exactly follow what that committee has recommended. I think that's the right thing to do, it's the decent thing to do and it's the thing we're going to do.
JOURNALIST:
Anti-terror laws, have you been forced to water down the initial power...?
PRIME MINISTER HOWARD:
No, I would have thought the Labor Party had been forced into a back flip. I notice it's called a concession, an adjustment. It's in reality a big back flip because they've railed against it as a terrible infringement of civil liberties and now for, you know, some reasons of political judgement and not high principle they have executed a back flip. And I congratulate them on it, I think it's the right thing to have done in the national interest.
JOURNALIST:
[inaudible] Government have to office some safeguards for Labor to support it, for example the state and territory leaders...
PRIME MINISTER HOWARD:
The Government has maintained the essentials of what we've put. I mean, what's happened is that Labor's said it would never accept a situation where the executive government could proscribe an organisation whether explicit parliamentary authority through legislation - that was their position and they said it was wrong in principle that that power be given to the Attorney General of the day, they've now accepted it.
JOURNALIST:
Mr Howard, just on Pacific issues, are you... did you discuss this Ms Clark the issue of PNG, particularly? And is Australia looking for New Zealand to do more of the heavy lifting in terms of Pacific affairs?
PRIME MINISTER HOWARD:
Well, the short answer is yes, no. We did discuss the issue. I talked in some detail about what we were doing in Papua New Guinea. But we're not looking to New Zealand for assistance. We accept that there is a particular bilateral link between Australia and Papua New Guinea and there are particular Australian responsibilities that don't derive from our common Pacific orientation but they are borne out of history and the association between the two countries. So, of course, we discussed it, but no, I've not asked and I will not be asking New Zealand for assistance.
JOURNALIST:
You're satisfied with the role that Australia is playing in the Pacific? I mean, there have been concerns continued to be raised that Australia's been, I guess too assertive. Does New Zealand share any of those concerns?
PRIME MINISTER CLARK:
No it doesn't, we're delighted that Australia is taking an increasing interest in the Pacific and is prioritising the relationship and I think that will be beneficial for the Pacific.
JOURNALIST:
Prime Minister Clark, there are reports this morning that New Zealand is close to becoming the first developed country to finalise a Free Trade deal with China, can you comment on those reports?
PRIME MINISTER CLARK:
I think the reports are running a bit ahead of things, it's impossible to say that any one country will be the first to strike a deal because China will be talking with a lot of players and you cannot asses at what rate talks will go with individual countries or groupings of countries but what I can say is we're very happy with the progress we're making in discussions with China, you'll recall that in October last year Australia and China were able to make rapid progress on a trade and economic framework agreement which has seen us laying the basis then for FTA negotiations and New Zealand has been working to the same end.
PRIME MINISTER HOWARD:
One more, then we've got to go, the Prime Minister's got other commitments.
JOURNALIST:
Are you concerned about Wilson Tuckey's comments that he made regarding Graham Edwards and are going to speak to him or your office going to speak to him or have you spoken to him about those comments?
PRIME MINISTER HOWARD:
Well I was asked something yesterday about this and I made well, I want to make it very plain that the views I expressed yesterday I adhere to very strongly and I think any criticism of Graham Edwards in any way in relation to his war service or the entitlements deriving from it is completely unacceptable and will be seen by the Australian public as such. That doesn't mean to say that colleagues don't have a right to engage in legitimate and vigorous debate but let's face it, the man paid a terrible price for his war service, Australians understand that, I understand that, and all of my colleagues understand that as well.
JOURNALIST:
... effectively declared Mark Latham's honeymoon over, do you think your backbench will be doubting that today?
PRIME MINISTER HOWARD:
Well I don't talk about what was said in the Party Room.
JOURNALIST:
... may I have a question? You may be aware that there's a debate here in Australia about Australia's involvement in the war in Iraq and yesterday in the Parliament the Australian/American alliance was evoked is a factor in decision making process here in Australia. Does the ANZUS alliance still have any vestige of authority as far as you're regarded and why did you not go to war?
PRIME MINISTER CLARK:
The answer to the latter question has been stated many times and I'll restate it for the record; the position of the New Zealand Government was that the diplomatic and inspection process had not run its course and that was what we based on our decision on, nothing else.
PRIME MINISTER HOWARD:
Thank you.
[ends]