Flow over Ditch boosts talk of political union

By WARREN GAMBLE

Everyone has a family member there, our big companies are moving there, and perhaps one day we could jointly host the Olympics - so why don't we join Australia?

New Zealand population experts have again raised the question of a political union after the continued record numbers heading across the Tasman.

A leading demographer, Professor Ian Pool, argued at a transtasman population conference in Wellington that de facto integration with Australia was already happening because of people flows.

More than 400,000 New Zealanders are now living at our neighbour's place. Last year a record 35,495 left permanently or intending to stay longer than a year in Australia. Many were lured by brighter job prospects, and despite a slowing economy, the rate was even higher in the first months of this year.

"I think ultimately if we don't work with Australia we will just become a small nation state in the Pacific," Professor Pool said.

Prime Minister Helen Clark said a political union was "not even on the horizon."

"Our two economies are closely integrated, we enjoy a common labour market, but just as the European Union hasn't meant that countries cease to be states nor will the close relationship with Australia mean that we cease to have nationhood."

This year, a study suggesting a common currency with Australia was welcomed by small businesses. Finance Minister Michael Cullen said monetary union was not on the agenda, but the issue was worth debating.

Professor Pool said society might be ahead of politicians on the issue, as it had been on the issue of cohabitation.

The flow of New Zealanders to Australia is outside Government control because of the free travel agreement. The present losses may be just another cycle of high outflows (the last was in the late 1980s) and could also be distorted by New Zealanders' returning in under a year.

But if the losses continue they will have a big impact on our immigration policy, increasing the need to attract greater numbers here.

The immigrants - a Herald series

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