MPs' report urges more intimate relations with Australia

By KEVIN TAYLOR

A transtasman economic community is the way forward, says a parliamentary committee.

It also wants a new Cabinet post - a Minister for Australia.

Released yesterday, the foreign affairs, defence and trade committee's report on its two-year inquiry into the transtasman relationship makes 17 major recommendations.

It proposes expanding Closer Economic Relations (CER) into an Australia New Zealand Economic Community and says an Anzec institute or "think tank" should be set up.

The think tank would have "strategic responsibility" for work across all sectors on transtasman issues.

The report said the single community would recognise that resolving difficult issues, ranging from tax harmonisation to investment, would bring mutual benefits.

The committee also wants a new Cabinet post, a Minister Responsible for the Relationship with Australia, whose job would be to co-ordinate portfolio issues and advance Anzec.

Other recommendations are for a merger of the two stock exchanges to ensure New Zealand firms have access to Australian capital, co-ordination of industry assistance policies, and a boost in the number of New Zealand officials in Australia, particularly at state level.

Trade Negotiations Minister Jim Sutton said the committee's recommendations on extending CER would be carefully considered and the Government would respond within three months.

The Government was already active on a number of fronts trying to advance CER, he said.

"These include tax issues, business law co-ordination, harmonising regulations, science and innovation co-operation and many other issues."

Sutton said the Government was discussing with business what issues should be given priority.

David Truscott, chairman of the Australia New Zealand Business Council, welcomed the committee's report.

The council had proposed a vision of a truly borderless transtasman market and the committee's plan for Anzec was very close to the business view.

"We hope the two Governments will accept this recommendation and move to implement it as quickly as possible."