E&OE..................
Thank you very much Helen. To Robert Cotton, the Australian High Commissioner to New Zealand, and Simon Murdoch, New Zealand High Commissioner to Australia, ladies and gentlemen.
Janette and I are truly delighted to be again in New Zealand to continue a pattern of regular bilateral visits established with one of Helen's predecessors when I became Prime Minister in March of 1996. There are no two countries in the world that are closer historically, culturally, and economically than Australia and New Zealand. It's a relationship that has substance and durability beyond the political complexion of governments in power in Canberra and Wellington. And can I say that I have found in working with Helen the relationship to be close and cordial and very effective in the long-term interests of relations between our two societies.
The economic association is extremely close and your Prime Minister has outlined some of the dimensions of it. And it's worth adding that CER has been one of the great examples of a bilateral trading relationship working to the benefit of both of our societies. We do have a number of economic challenges in common.
We are societies that are expected to maintain and deliver to our populations continued high living standards. We are societies that believe in a decent social security safety net. We are societies that believe in low unemployment. And we are societies that will only thrive and prosper in the future if we have a very strong business sector.
For Australia's part over the last few years we have undertaken a series of major economic reforms which have been designed to make our economy more competitive. You beat us to the gun by something like ten years in introducing a broad-based indirect tax system. And you of course don't have an upper house, we do. And that of course involved some changes to what was originally planned. But we now have well and truly bedded down a new taxation system. There's been some fine-tuning in relation to some of the administrative requirements but over all taxation reform has worked remarkably well.
We've also enjoyed significant productivity gains as a result of the industrial relations changes that have been made in Australia particularly during the first two years of my government being in office. The economic outlook in Australia, which is important to New Zealand as it is to Australia, remains quite robust despite the fact that we will inevitably be effected in some way by the slower levels of economic growth that are emerging out of the United States. But despite that the advice we currently have from both our Treasury and our Reserve Bank indicate that over the next year the rate of growth, although slower than what it was over the last two years, will still be in the order of 3.5% or more. Now that represents by historic standards a very strong level of economic growth.
And I want to thank the business men and women of New Zealand for the contribution that they have made to the economic associations between our two countries. There are numerous examples of the intermixed and intermingled economic and financial commitments of corporations from our two countries. And on a daily basis I find myself meeting business men and women in Australia either from New Zealand or associated with companies that operate in New Zealand or have their origins in your country.
It's a very strong and robust economic relationship. It is a demonstration to other countries that open more liberal trading policies always work for the benefit of societies and always add value to the living standards of communities. We in Australia face a constant challenge to explain and communicate effectively the benefits of economic change. We live in a world where globalisation is unavoidable. There is no option of saying to the world stop I want to get off. We are all, whether we may like it or not, part of a global economy which means that those who survive and do well are those that can harness the advantage of the globalisation whilst reassuring those within our society who are adversely affected by the process of globalisation and where necessary providing those people so affected with a degree of support and a degree of understanding.
In any democracy there's a constant challenge to explain and defend and communicate the benefits of change and reform. That is a challenge for New Zealanders as it is a challenge for Australia, and particularly it is a challenge for the business communities of our two societies. And I know it is a challenge that the leadership of the business community here in New Zealand will certainly respond to as it always has in the past.
Janette and I look forward very much to the next two days that we will spend in your beautiful country and I hope in this brief visit to make a further contribution to a close relationship built on history, a deep emotional commitment, a shared strategic future, and very much a shared economic destiny. Thank you.
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