Labour leader David Shearer has called for the Government to take the lead on the issue, saying Australia was compromised by its funding to Nauru for the asylum seekers' centre.
Yesterday Prime Minister John Key said New Zealand would not necessarily only act in coordination with Australia but it would "useful" if Australia also responded. He said New Zealand's aid was targeted at the justice sector.
"We are not ruling out the fact that we won't change what we are doing. I don't know if we have to be absolutely coordinated in what we do, but a response from both Australia and New Zealand would be useful." He said it was unlikely to be part of the UN Security Council work undertaken while New Zealand was chair. "At this stage, we think we're some way off that. The first instance is to raise our points and put some pressure on them." The issue is likely to dominate the agenda at the Pacific Islands Forum leaders' meeting in PNG in September.
New Zealand's aid to Nauru totals $2.3 million, of which $1.2 million is for its Justice Department. Australia aid is about A$U 21 million and will rise to A$U 26 million next year. Australia also funds the asylum seeker processing centre, which has become a major contributor to Nauru's economy.
The Law Societies in both New Zealand and Australia have called for action against Nauru and last week a group of constitutional and international legal academics from New Zealand universities called on the Government to cut New Zealand's $1.2 million aid funding for Nauru's justice department if the rule of law was not restored.