Kiwis join the queue in Aussie rules shift

By VERNON SMALL deputy poitical editor

Unless you are reading this in the airport departure lounge, it is probably too late to claim automatic right to permanent residence in Australia.

From today, New Zealanders will still be able to travel, work and live in Australia.

But if they fall on hard times they will not qualify for the dole or other benefits and may have to come home to get financial support.

Under existing rules, New Zealanders in Australia face a two-year stand-down before they qualify for most benefits.

But Prime Minister Helen Clark and Australian Prime Minister John Howard will sign a new pact today ending New Zealanders' automatic right to the dole and most other welfare benefits in Australia.

It will take effect immediately, and Australia will within hours announce new immigration rules covering New Zealanders.

Both countries are labelling the welfare deal a "win-win," ending long-running friction caused by Australia's attempts to increase the amount it asks New Zealand to pay.

Last year the Government handed over $169 million to help cover benefit costs. Helen Clark will release figures showing the deal will save tens of millions of dollars on what Canberra was seeking.

It is expected to save the Australian taxpayer about $1 billion over 10 years.

Helen Clark yesterday denied some New Zealanders would become second-class citizens in Australia.

"They are not citizens. The issue is that there has been a quite disproportionate flow from New Zealand to Australia in recent years," she said after two hours of talks with Mr Howard in Auckland.

"At some point you have to face up to the implication of that. Our message to Kiwis is: 'If you go to Australia, just the same is if you go to the States, Britain, Japan or anywhere else, you can't expect your Government to follow you to the ends of the earth with social security arrangements across the board'."

The deal is likely to be well received in Australia, where the myth of the Kiwi Dole Bludger survives.

Mr Howard is under pressure from Pauline Hanson's resurgent nationalistic One Nation party, and polls say he could lose his own constituency seat.

His Coalition, which faces probable defeat in this year's general election, could reap the benefit of tightening immigration.

Under the new arrangement, New Zealand will continue to pay for superannuation, war pensions and for those who have long-term or severe disabilities.

Only those in Australia now, those who marry an Australian or who are temporarily out of Australia will qualify for automatic permanent residency.

It is likely Australia-based New Zealanders will continue to qualify for health and education benefits, although where they are set by individual states the federal Government may have to intervene.

From today, those seeking permanent residency will be treated the same as other countries' nationals and will have to meet Australia's qualifications, skill quota and health restrictions.

Most people aged over 45 will be excluded from permanent residency.

There are no plans to impose the same restrictions on Australians coming to New Zealand. Last year, 5200 came to live in New Zealand compared to 31,600 New Zealanders who went the other way.

Helen Clark said the administrative inconvenience of making the change could outweigh any savings.

She would encourage more skilled Australians to come here.

The new deal is expected to take most of the heat out of the welfare issue between the two countries.

However, Australia is still keen to establish a common immigration border.

It wants to stop what it sees as looser immigration rules here, and the possible establishment of a special access category for Pacific Islanders, providing "backdoor" entry into Australia for third-country nationals.