NZ likely to extend deposit guarantee scheme, says Key

Prime Minister John Key. Photo / Mark Mitchell

The government guarantee on lending deposits is set to be extended when it ends in October to match the Australian scheme, Prime Minister John Key says.

Key told a business audience in Melbourne yesterday that the New Zealand Government was likely to extend its guarantee within the next few weeks, The Press reported.

The Australian scheme will run for two more years.

On a trip to Australia earlier this month, Mr Key indicated an increase in the trans-Tasman investment cap would be announced.

A single economic market with Australia would occur eventually, but a common currency was unlikely, he said.

Changes to trans-Tasman travel requirements were also to be discussed today when Key meets Australian Prime Minister Kevin Rudd.

Key will attend the Australia New Zealand Leadership Forum in Sydney tomorrow and the All Blacks game on Saturday before returning home.

Foreign Minister Murray McCully, who will also attend the forum, said it played a "major role in bringing together key political figures".

"It is an important opportunity for us to get to know more about what makes Australia tick, and to outline where the new Government sees New Zealand heading in coming years."

Ministry of Foreign Affairs and Trade chief executive John Allen, a former New Zealand Post chief executive, will chair the forum with Australia's Rod McGeoch, Sky City Entertainment group chairman.

They said a single trans-Tasman market, trans-Tasman travel, defence and climate change were the main issues on the agenda.

The New Zealand International Business Forum will attend the event and said the relationship with Australia had "a bearing on all aspects of New Zealand's economic management and performance".

NZPA