Economic crisis dominates agenda for Key and Rudd

Prime Minister John Key will today continue talks with transtasman counterpart Kevin Rudd and senior Australian ministers, focusing heavily on the global economic crisis that is hammering both countries.

The two met last night in private talks at Kirribilli House, the official prime ministerial residence in Sydney, and were later joined by Treasurer Wayne Swan and officials.

Today Mr Key will meet Mr Rudd, senior Cabinet ministers and business leaders. This is the third meeting for the two Prime Ministers after the Asia Pacific Economic Co-operation summit in Peru and the Pacific Islands Forum leaders meeting in Papua New Guinea.

Tackling the economic crisis remains the key priority.

Australia is New Zealand's biggest market, worth almost $10 billion a year, and its largest source of merchandise exports.

New Zealand is Australia's sixth-largest export market, with the corporate health of both bound by total two-way investment of $122 billion.

"Our relationship with Australia is a vitally important one," Mr Key said.

Their agenda will focus on serious issues, with implications - some sensitive - for both countries.

Finance Minister Bill English and Defence Minister Wayne Mapp have already crossed the Tasman to meet their Australian counterparts, covering much of the ground that the two Prime Ministers will discuss.

Although their talks will be overshadowed by the economic crisis, Mr Key and Mr Rudd will also discuss developments and further co-operation in the immediate region - where both countries are engaged in the Solomons and East Timor - and the wider Asia-Pacific.