Terror raids not reason to redeploy SAS - Key

John Key says New Zealand has a responsibility to help try to halt the spread of terrorism. Photo / Hawke's Bay Today

The raids on suspected terror cells in Melbourne show that New Zealand and Australia are not immune to terrorism but that does not necessarily strengthen the case for New Zealand to send its SAS troops back to Afghanistan, John Key says.

Speaking in Cairns this morning, the Prime Minister said the arrests of those suspected to be involved in a terror plot on military bases in Australia did not necessarily strengthen the case for New Zealand to send its SAS back to Afghanistan.

He said it was New Zealand's responsibility to "play a part and try to clamp down on the global spread of terror."

However, he did not "draw a link" between the Australian incident and New Zealand's final decision, expected to be made within weeks.

"All that shows is that New Zealand and Australia aren't immune, that these cells could be developed and we need to remain vigilant. It's not as simple as looking at what happens in the confines of New Zealand - it's the fact we are a country of people who travel around the world, we are a first world developed country."

Yesterday Australian Prime Minister Kevin Rudd said the incident showed the need for deployment in Afghanistan to continue, as many of those involved in terror attacks were trained in Afghanistan.

He said the incident was a "sober reminder" that the threat of terrorism in Australia remained.

Mr Key is in Cairns with 14 other Pacific Island leaders for the annual Pacific Forum leaders' meeting.

The Forum will open later this morning and the leaders will have their retreat tomorrow.

The main topics of discussion are expected to centre on the economic crisis. Mr Key and Mr Rudd will release a paper on the impact of the economic downturn on the Pacific countries, including recommendations to help those countries weather the global recession.

The leaders are also expected to endorse the beginning of negotiations for the PACER Plus trade agreement between the Pacific states already taking part in the PACER (Pacific Agreement for Closer Economic Relations) and Australia and New Zealand. However, the small island states yesterday expressed some concern about whether they were ready to begin the negotiations and losing income from tariffs.

Mr Key said he expected some "healthy discussion" about their readiness to sign up and about Fiji's part in the negotiations. New Zealand has indicated it is comfortable with New Zealand taking part as long as it does not undermine Fiji's suspension from the Forum.

"At this point it's too early to give a verdict on that." He said it was important to have Pacer Plus concluded but it was expected to be several years before an agreement was finally reached.

The small island states also called for the Recognised Seasonal Employers' scheme to be extended further.

Today Mr Key announced NZ Aid would put $500,000 into a pilot programme of skills training for those Pacific workers while they were taking part in the scheme. It would initially provide literacy, numeracy and financial literacy courses for 300 workers in the Bay of Plenty, Hawkes Bay and Marlborough.

The upskilling scheme was initially proposed by former PM Helen Clark at last year's Pacific Islands Forum in Niue.