Fran O'Sullivan: Sky's the limit for transtasman progress

Henry wants Australians to do Kiwis a favour" blared the headline across a Sydney Morning Herald story outlining how Graham Henry believes the Wallabies could help the All Blacks win the Tri-Nations by beating the Springboks in their forthcoming tests in Perth and Brisbane.

"We need the Aussies to get up in the next two tests," said Henry in the wake of the heart-stopping Bledisloe Cup win. "Hopefully they can do that and that gives us a sniff."

The SMH story was well down the Monday sports section after the multiple post-mortems on Australia's loss in the Ashes and the weekend's league matches.

But it would not be too much of a stretch to see Henry's comments as a metaphor for how the transtasman business and economic relationship is developing.

Just park the rugby for now.

The most exciting transtasman collaboration against the South Africans is not in fact on the rugby field but in science where Australia and New Zealand have just announced intentions for a joint bid to host the $3.1 billion Square Kilometre Array (SKA) - a project which a top Australian scientist speaking at the Australia New Zealand Leadership Forum labelled the "most exciting, visionary, scientific project of the 21st century".

What's at stake is the opportunity for Australia and New Zealand to take part in a project which is designed to build the world's most powerful cm-wave radio telescope which will enable scientists to explore fundamental questions in astrophysics, physics, cosmology, particle astrophysics and astrobiology.

The SKA will be used to probe the origins of the universe, analyse distant objects, and study more local phenomena like climate change.

According to Australian Innovation Minister Kim Carr, the SKA will not only increase Australia's and New Zealand's scientific capabilities, it will result in economic benefits and spinoffs in a number of areas, including supercomputing, data transmission, renewable energy, construction and manufacturing.

But Economic Development Minister Gerry Brownlee points out that Australia needs New Zealand's input to make the bid to host the project succeed.

Australian Prime Minister Kevin Rudd asked former Prime Minister Helen Clark to pledge New Zealand's help a year ago - but nothing has happened till now.

The SKA bid was by far the most exciting element of transtasman co-operation to be unveiled during Prime Minister John Key's state visit to Australia, and the adjoining leadership forum. But it is clear the Anzac bidders are coming from behind.

Proponents of the South African bid believe the telescope will give young Africans a sense of purpose and inspire them to follow scientific careers. The SKA's footprint will not just be confined to South Africa - eight other African nations are participating.

The problem is the Anzac partners are up against a South African consortium which is promoting its bid by saying "Africa's time has come".

The emotional atmospherics are such that informed observers believe it will by no means be plain sailing to "win against Africa" given US President Barack Obama's stated desire to "do something for Africa".

South Africa does also know how to mount international bids - its successful bid to host next year's World Cup (soccer) is evidence of that.

But Australia and New Zealand are not lacking form in this area either.

Rod McGeoch, who is Australian co-chair for the forum, led their winning bid for the 2000 Olympic Games. Despite its size New Zealand won the rights to host the 2011 Rugby World Cup.

There is little time to be lost putting together Australasia's best scientific and promotional heads into a bidding team if Australasia is to head off South Africa.

Getting New Zealand's Kevin Roberts - currently global head of Saatchi & Saatchi - on board would also assist the formation of a dream team.

After seven years of at times fractious negotiations the Australasian single economic market is gradually moving towards reality.

Transtasman airline travel will be streamlined at the border, the welter of commercial regulations which ladle additional costs on the companies doing business on both sides of the Tasman are being pared back or harmonised, and both Governments have attached considerable importance to developing climate change regimes which intersect as much as possible.

Key has clearly struck a rapport with his counterpart Australian Prime Minister Kevin Rudd: Somewhat blokey but overlaid with good humour as evidenced by Rudd's ready adoption of the All Blacks' tie on Monday in response to the Wallabies defeat.

Like the All Blacks and Wallabies, commercial players from the two countries will continue to compete hard against each other within the developing single economic market, but "offshore" is a different matter.

Key and Rudd have taken the relationship up a notch by exploring new fields where New Zealand and Australia can combine forces offshore including a special Anzac ready response defence force; combining offshore trade promotion in specific areas and ponying-up to develop joint bids for scientific projects.

About 100 New Zealand and Australian leaders, mainly politicians, bureaucrats, regulators and business people, also attended the adjoining two day leadership forum.

Among takeouts from the forum:

* Australia and New Zealand businesses should shape the agenda for regional trade architecture like Asean plus 6 and the Trans-Pacific Partnership.

* There are important opportunities for Australian and New Zealand businesses in clean technology innovations with sustainable energy a "future brand" for the region.

* Effective regulatory and banking systems - as well as stimulatory measures - have assisted Australia and New Zealand in the current economic environment.

* Global growth beyond 2010 will be driven by the major Asian economies (China, Japan, India) and Australia and New Zealand must position for this.

* Australia and New Zealand are working together on all defence-related matters, including regional disasters and are exploring inter-operability of their armed forces.

* There is a strong aim to make transtasman travel a domestic experience to reduce travel costs, improve travellers' travel experiences and open the opportunity for new air services.

* New Zealand is keen to have a single point of entry in place by the 2011 Rugby World Cup.

* Business wants dividend imputation retained on the taxation front but also mutual recognition of Australia-New Zealand imputation regimes.

* Digital technologies will be "profound enablers of economic growth" for both New Zealand and Australia.

* Australia and New Zealand have to be "globally reputable as a single market" in a post-financial crisis corporate regulation paradigm and considerations should be given to a transtasman banking regulatory system.