Pressure goes on to strengthen trans-Tasman ties

8.00pm - By PETER WILSON

A conference of New Zealand and Australian business leaders has identified three issues considered vital to strengthening the trans-Tasman relationship and improving the economies of both countries.

The Leaders Forum in Wellington decided to put pressure on both governments to achieve a common border, remove troublesome differences in business regulations, and raise labour standards to protect the threatened common skill base.

The two-day conference was attended by 74 delegates from the business sectors, both governments, the labour movement and opposition parties.

New Zealand chair Kerry McDonald and Australian chair Margaret Jackson said in a joint statement today the inaugural meeting of what will be an annual event had been a great success.

"It has laid a foundation for greater development of the ties between the two countries," they said.

"It is a very exciting time for the relationship between our two countries, and this forum is timely and also a reminder of the various barriers that currently inhibit closer ties."

Ms Jackson, the chairwoman of Qantas, told a press conference the forum had been "fabulous".

"We're very fortunate, at this time in our history, that we've got a great relationship between our prime ministers, our foreign ministers, treasurers and a large number of business leaders on both sides of the Tasman," she said.

"So we've got a terrific opportunity, probably better than we've had at any moment in our recent history, to actually think about what future we both want to see together."

Mr McDonald, chairman of the Bank of New Zealand, said the forum had been very conscious of the world environment.

"It's not an option to stay where we are," he said. "It's a very competitive environment for capital and labour.

"We're concerned about the loss of quality jobs and corporate headquarters to Australia.

"Australia is concerned about the hollowing out of its corporate environment to Singapore and Tokyo...so we're both in very much the same circumstances."

Ms Jackson agreed, saying both countries had ageing populations and a skill shortage.

"We're asking what we can do to ensure we have a sound skill base, in New Zealand for New Zealanders and in Australia for Australians, and keep our talents in this region rather than them working in New York or London or everywhere else."

Both chairs said a common border would make a huge difference to business travel, tourism and the transport of goods.

"It would be a great thing to leave our passports at home and jump on a domestic flight," Ms Jackson said.

"Easier movement of people and a more efficient transfer of goods will result in a less costly underpinning of both economies."

Foreign Affairs Minister Phil Goff attended the forum and said at the same press conference a common border "makes a lot of sense" and could be worked on.

"It means you have to have a common immigration policy, a common quarantine policy, and it needs to ensure there is common protection against external threats like terrorism," he said.

Australian Foreign Minister Alexander Downer said he welcomed the push for a common border.

"There are a lot of challenges to get to those kind of outcomes. It could take quite some years," he said.

"But it's good these things are being discussed, its good to have so many very senior Australians focusing so substantially on the trans-Tasman relationship and on New Zealand, not just on America or South-East Asia or India."

The forum will meet again in a year's time in Australia.

- NZPA