Reuters is reporting that NZ Prime Minister-elect John Key said that he hopes to widen a free-trade deal with Australia and develop a single capital market between the two neighbours.
Key, in an interview with the Australian newspaper, said he would meet his centre-left Australian counterpart, Kevin Rudd, to discuss his ambitions at this week's Asia-Pacific Economic Cooperation summit in Peru.
Key said he hoped to harmonise securities regulation, accounting procedures and some tax legislation to create a single market for investment capital, the paper said. "I am a very pragmatic person, I am measured and I am not going to be guided by blind ideology," he said.
In my experience, new leaders often have their best opportunity to make a really significant impact whilst they continue to enjoy a honeymoon period. Key is undoubtedly in that position now. And creating a single market for investment capital would most definitely meet the definition of 'significant impact'.
I have been at this particular coal-face for some time now. Accessing investment capital in NZ is challenging at the best of times. And these are not normal times. Opening up the Tasman could provide a massive boost to NZ business. Unfortunately, these initiatives normally take some time to negotiate and even longer to put in place. So what is Aussie PM's Kevin Rudd's likely take on Key's thoughts?
Think back to August 19th. Speaking to a Auckland Chamber of Commerce meeting, Rudd said that the CER Treaty between Australia and New Zealand was one of the most forward-looking economic treaties in the world, but it could be improved further. He said he was committed to moving towards a single economic market between New Zealand and Australia, and hoped that efforts to improve the Australian regulatory environment would help New Zealand.
So perhaps there is some scope for some real progress on Key's thoughts for a single market for investment capital. Let's just hope that his honeymoon period lasts for some time yet.
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