Australia And NZ Stride Towards A Single Economic Market
July 16th, 2009
Giant strides towards the goal of a single economic market may be taken by NZ and Aust in the next few weeks. In prospect are a pact on the portability of retirement savings, a joint investment protocol; and moves towards a common border. In his talks with Treasurer Wayne Swan in Brisbane this week Finance Minister Bill English expects to finalise the agreement on savings portability, which though it might take 18 months for legislation to be enacted, could lead to thousands of Kiwis who have worked in Aust bringing billions sitting in pension funds on the other side of the Tasman back to NZ. English says the chances of an agreement being signed are “promising,” though some technical details have to be ironed out.
NZ officials believe the pact could lead to a big boost to the savings pool. The investment protocol could smooth capital flows across the Tasman, possibly freeing Australians from restrictions in NZ’s overseas investment rules. Officials are making steady progress towards the common border, following the mandate delivered to them by the two PMs, and an announcement on an action plan, with roadmarks, may be made when John Key pays an official visit to Canberra on August 18. The goal is to remove border controls on flights between both countries, by removing the need for passport, quarantine and immigration checks. This would be an enormous boost to the tourist industries on both sides of the Tasman. Traffic through Queenstown airport, for example, could rise exponentially.
Copyright © Trans Tasman Media Ltd
Duncan Cotterill