Joint Statement by Hon Lianne Dalziel, New Zealand Minister of Commerce and Senator the Hon Helen Coonan, Australian Minister for Revenue and Assistant Treasurer

Business Law Coordination Work Programme

Our discussions today have highlighted the significant progress that has been made since our governments signed the Memorandum of Understanding on the Coordination of Business Law in August 2000.

We welcomed the advances that have been made in a number of areas of our work programme, designed to remove costs to doing business across the Tasman and facilitate a more seamless trans-Tasman market.

Competition Policy

We have agreed to explore ways of improving the integration of our competition regimes and seek to co-ordinate more closely in their development.  To this end, we have endorsed a work programme to examine the possible options for the greater co-ordination of competition policy and law.

Topics developed under the work programme include increased information sharing between the respective policy agencies and between the respective competition authorities.

Long-term issues to be progressed include coordination of application forms for authorisation applications between competition agencies.

In the very long term, possible work programme topics include the potential for joint decision-making on trans-Tasman issues by competition authorities.

Competition policy officials will meet on a regular basis to discuss issues of common interest and will report back to Ministers next year on progress in relation to the work programme.

Securities Markets

As an important step towards a more integrated trans-Tasman financial market, Australian and New Zealand officials have reached preliminary agreement on detailed proposals for mutual recognition of securities offerings.

Under the proposals, an issuer should be able to offer securities in both countries using a single disclosure document that satisfies the requirements of the home country, and investors should be able to take action in the courts of either country.

Legislation will be required to implement the proposal in Australia, and regulations will be required in New Zealand.

We have agreed that our governments will release a joint discussion paper by 30 November 2003 setting out detailed proposals for the mutual recognition regime, for public consultation in Australia and New Zealand.  In the light of the public response, officials anticipate seeking approval from the respective governments on a finalised proposal by 30 June 2004.

Accounting Standards

We are committed to reducing transaction costs for firms operating in both countries, by developing an efficient and effective process for trans-Tasman standardisation of accounting standards.  These developments are part of the global trend towards adoption of adopting international accounting standards.  We are also aiming to maximise the influence of Australia and New Zealand in the development of these international standards.

As a significant step towards these aims, we have agreed to establish a working party with membership from the Australian Treasury, New Zealand Ministry of Economic Development, Australian Financial Reporting Council and the New Zealand Accounting Standards Review Board to explore a model for a joint institution that would oversee the development and enforcement of trans-Tasman accounting standards.  We intend that the working group will report to governments in early 2004 with a view to releasing a discussion document on the proposed model in March 2004.

In addition to investigating the establishment of joint institutions, a number of steps can be taken in the meantime.  These include continuing and developing information exchange between relevant bodies, facilitating cross-appointments between the standards setting bodies, and increased co-operation and co-ordination in international bodies.  Officials will report back by 29 February 2004 on cross-membership and strategies for co-ordination in international bodies, following further discussions with our standards setting bodies.

Streamlining Administration of trans-Tasman Insolvencies

The New Zealand government proposes to amend insolvency law in ways that will increase the similarities between the two countries’ laws.  In particular, the New Zealand government has decided to adopt a system of business rehabilitation modelled on the Australian voluntary administration provisions. 

In addition, both our governments have indicated that they propose to adopt the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.  The Model Law provides mechanisms for dealing with cases of cross-border insolvencies, which will simplify both rehabilitations and insolvencies where the debtor has assets in both countries.

We note that officials are working on other measures to facilitate the efficient administration of trans-Tasman insolvencies, involving enhancements to the Model Law which will allow for a simplified and streamlined operation in the trans-Tasman context.

28 August 2003

Sydney