NZ-Oz gap on agenda for talks

Phil Goff. Photo / Steven McNicholl

Labour Party leader Phil Goff will meet Australian Prime Minister Julia Gillard today for talks that will include the economic gap between their two countries and how to bridge it.

But he says more mining - a major strength of the Australian economy - is not the answer in New Zealand.

"That is their commodity strength, and our commodity strength is in a different direction," Mr Goff said.

"What they've done in their tax policy, their investment policy and skill-development policy has been quite different to New Zealand. They've put in place policies that made a real difference, rather than just gimmicks.

"How have they managed to create 250,000 jobs this year and lift real incomes while we've gone in the opposite direction?

"What can we learn from the Australian experience?"

Mr Goff used the public holiday yesterday to make the trip and sit in on Parliament in Canberra (Australia celebrates Labour Day in May).

He did not see the trip as a victory over John Key for being the first to meet Ms Gillard since the Australian election.

"I don't think so. I've expressed here my hope that key ministers will get in touch with their New Zealand counterparts at an early stage.

"I hope that our Prime Minister and the Australian Prime Minister get together. That's important for the overall relationship.

"I don't see this as a point-scoring exercise."

Mr Goff met Australian Minister of Foreign Affairs Kevin Rudd yesterday for discussions on the Pacific and trade developments.

Labour's intention to tighten controls on foreign investment and how it might affect the transtasman relationship did not come up, he said.

"That's not going to particularly affect Australia, except potentially in the area of farmland, and that's not particularly a focal point of Australian investment in New Zealand anyway," Mr Goff said.

He also met Australia's Climate Change Minister, Greg Combet.

"I think you'll find Australia probably going down a partial ETS system with an emphasis on a carbon tax, but also a key emphasis on complementary measures like energy efficiency.

"That leaves New Zealand somewhat stranded in the approach we have taken."

John Key is expected to hold his first formal talks with Ms Gillard at the East Asia Summit in Vietnam next week.