New trans-Tasman benefit test to drive CER

Friday 21st August 2009

The New Zealand and Australian Prime Ministers have agreed the principles for a much deeper trans-Tasman relationship in one of the most high-powered delegations to Canberra in a generation.

New Zealand Prime Minister John Key and his Australian counterpart, Kevin Rudd, announced vigorous pursuit of a Single Economic Market concept to build on the Closer Economic Relations Agreement, now more than 40 years old and an essential element in the glue between the two economies.

"A key element in the gramework is a deliberate move from consideration purely of national benefits in policy developments to consideration of the net trans-Tasman benefit," the joint statement of intent from the two Prime Ministers said.

The statement outlined seven key principles to guide development of the relationship:

· Australians and New Zealanders "should not have to engage in the same process or provide the same information twice";

· Measures should deliver substantively the same regulatory outcomes in both countries in the most efficient manner;

· Regulated occupations should be able to operate seamlessly between each country;

· Both governments should seek economies of sacle and scope in regulatory design and implementation;

· Products and services supplied in one country should be able to be supplied in the other;

· Enhanced joint capacity to jointly influence international policy design;

· "outcomes should see to optimise net trans-Tasman benefit".

Australian media also focused heavily on undetailed plans for closer integration of the New Zealand and Australian defence forces, and "reinvigorating the ANZAC spirit".

One immediate priority will be concluding a new CER Investment Protocol, with new screening thresholds set at A$953 million for New Zealand investments in Australia and NZ$477 million for Australian investment crossing the Tasman.

Areas of shared outcomes already identified are insolvency law, financial reporting, financial services, competition policy, business reporting, company law, competition policy, business reporting, personal property securities law, intellectual property law, and consumer policy.

Among specific initiatives listed in the Single Economic Market Outcomes Framework are a common trademarks register, a new Joint Food Standards Treaty, and cross-membership of the Commerce Commission and its Australian counterpart, the ACCC,to ensure consistent approaches to competition policy.

A single companies registration process to link New Zealand Single Business Numbers and its Australian equivalent, the Australian Business Number system is also mooted to "significantly reduce compliance, reporting and stationery costs".

Also in focus are much simpler trans-Tasman border protocols, with the ideas such as the potential for Australian and New Zealand border authorities to swap luggage X-rays to allow pre-clearance of passengers' effects before arriving in either country.

If a New Zealand Productivity Commission were established, it would be able to interact with the Australian Productivity Commission.

Both Prime Ministers pledged the need for "substantial progress on all of these areas for the remainder of the year".

Joint action on carbon capture and scientific efforts to find ways of reducing agricultural greenhouse gas emissions were also targeted, and to collaborate on emissions trading scheme development "where it would be of benefit".

However, one hardy perennial New Zealand desire - to have trans-Tasman recognition of imputation credits - got no more than lukewarm endorsement, with the joint statement noting only "New Zealand's strong interest in the mutual recognition of imputation credits".

Businesswire.co.nz

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