PM hints at more for spy agencies

By JOHN ARMSTRONG political editor

Spy agencies are likely to get more money from the Government to boost surveillance and intelligence gathering in the wake of last week's terrorist attacks in the United States.

The Prime Minister indicated yesterday that intelligence sharing with the Americans was also likely to increase as part of renewed and comprehensive global efforts to combat terrorism.

But Helen Clark was hesitant about committing military personnel to any multinational force that President George W. Bush assembles to strike against Afghanistan or Middle Eastern states harbouring terrorists.

She was reluctant to say whether New Zealand would even make a limited symbolic flag-flying contribution in terms of logistic support to such a force - as it did during the 1991 Gulf War against Iraq.

New Zealand contributed Hercules aircraft and a medical team to the coalition force put together by President Bush's father to oust Iraq from Kuwait.

"We have said 'count us in' for an international effort to combat terrorism," said Helen Clark. "Beyond that, there have been no requests of any sort.

"It is not clear yet what form any action might take, what request might be made, how broadly based it [the multinational force] might be.

"The more broadly based the better because you have the moral high ground when you have a wide range of countries saying, 'This nonsense has to stop'."

But she predicted that the US response would largely be based around air strikes, possibly with British assistance.

She was encouraged that the US had not acted precipitately and was taking its time to think how best to exploit a unique opportunity in the war against terrorism.

In the meantime, she said, New Zealand would increase its vigilance in intelligence gathering.

"If the agencies come to us and say, 'We need to do more in light of what is happening', then the Government would look at it seriously."

Nearly $40 million is already budgeted annually for agencies such as the Security Intelligence Service and the Government Communications Security Bureau, which come under the Prime Minister's responsibility.

The cabinet will today, at its weekly meeting, get its first opportunity to discuss the crisis, including the potential impact on the local economy.

Asked if the Reserve Bank should consider a further cut in interest rates, the Prime Minister said that would "weigh heavily" on the governor's mind if the economy looked to be slowing drastically.

Meanwhile, Foreign Affairs Minister Phil Goff has left for a 10-day trip to Europe and New York during which he will meet Nato Secretary-General George Robertson.

What the other parties say:

* NATIONAL

Defence spokesman Max Bradford says New Zealand should follow Australia and invoke consultation clauses in the Anzus Treaty as an unambiguous statement that this country is committed to standing alongside the US. Options range from increasing intelligence to deploying SAS troops. "I don't think we are talking about a full mobilisation".

* ACT

Richard Prebble also says New Zealand should invoke Anzus articles on consultation. But the "downgrading" of our armed forces throws into question the Government's ability to make a realistic contribution. Mr Prebble suggests we might play a back-up role such as sending a frigate to patrol one zone of American interest.

* THE GREENS

Do not believe that New Zealand should be part of a multinational force. Foreign affairs spokesman Keith Locke says a military assault on Afghanistan would only foster more anger in the Islamic world. "We don't want more martyrs". The Greens say political and economic pressure on those hiding terrorists is more effective.

* NEW ZEALAND FIRST

Winston Peters doubts New Zealand will be asked to contribute troops. He says we are already heavily committed to peacekeeping duties in East Timor. Unless it was shown that terrorists were operating in "our part of the world", it would be inappropriate to join a multinational force.

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