Australia looking at "common market"

By FRAN O'SULLIVAN

Australian Treasurer Peter Costello will meet Finance Minister Michael Cullen in New Zealand in February for discussions on the formation of a "stronger true common market" between the two countries.

Cullen said yesterday that Australia - like New Zealand - was suffering from the "branch office" effect.

He acknowledged the risks from a common market lay with the smaller party. But he said there was no sign that any of the smaller nations that belonged to the EU had lost their national identities.

Speaking at the Herald's "Business in 2003" lunch in Auckland, Cullen said both countries needed to draw closer together and "bulk up" to boost investment.

There was need to further harmonise the business platforms between the two countries.

But Cullen said that New Zealand - as the smaller partner - would have to work harder.

"It is up to us to push the agenda along hard."

The Costello visit will be the first formal "ministerial meeting" at treasurer and finance minister level within the Australian-New Zealand relationship. The trade and foreign ministers meet each year for formal talks.

The Government is using the 20th anniversary of the signing of the Closer Economic Relationship, which occurs next month, as the platform for moves to deepen the association.

Costello had earlier been expected to visit New Zealand in December but had been detained by issues in Australia.

The Prime Ministers of both countries meet regularly.

Helen Clark and John Howard are also expected to meet in New Zealand early next year.