Adam Pearse: Volatile world order trumps ‘transtasman grenade’ in Aus/NZ summit
Australia Prime Minister Anthony Albanese (left) and New Zealand's Christopher Luxon spent a day together in Noosa for their annual leaders' meeting. Photo / Adam Pearse
THE FACTS
- PM Christopher Luxon travelled to Noosa, Queensland, for the annual Australia-New Zealand leaders’ meeting with Australia’s PM Anthony Albanese over the weekend.
- Both leaders spoke of a more volatile state of global affairs.
- Finance Minister Nicola Willis last month criticised Albanese’s Government for its tax reform.
If there’s one thing that sets apart Australia and New Zealand’s Prime Ministers from the rest, it’s how often they rib each other about sport.
It filters into almost every public interaction between Christopher Luxon and Anthony Albanese; this weekend’s annual Australia-New Zealand leaders’ meeting in Noosa only bolsters that reputation.
Whether it be rugby union, rugby league, cricket or football, the pair somehow find a way to reference their rivalries, no matter the setting or topic.
While genuine, that aspect of the relationship brings with it political benefit. It serves as a foundation for the two leaders to describe their connection as unique, which in turn adds momentum to both nations’ desire to advance shared interests, such as increasing economic and defence alignment.
It also provides an easy tool to dismiss any suggestion of tension between the two countries, shown in Albanese’s response to questions about pointed attacks on his Labor Government from National finance spokeswoman and Finance Minister Nicola Willis.
Through an unsolicited press release and social media attack videos, Willis used Albanese breaking a pre-election promise not to expand restrictions on capital gains tax discounts and negative gearing to reinforce National’s scare campaign that Labour on this side of the ditch will expand its own CGT if elected.
Willis went so far as to allege Albanese had cowered to political pressure as the Labor leader faces a Pauline Hanson-led One Nation Party that is gathering steam amid a flailing Liberal-National Coalition.
Dubbed the “transtasman grenade” by one Australian radio broadcaster, Willis’ salvo was a rare departure from the longstanding convention whereby governments on both sides tend to avoid directly criticising each other.
Willis’ tactic will be effective for some. Albanese’s decision, intended to cool house price growth, can be pointed to as recent proof these promises can be broken and will stoke fears within the New Zealand electorate that Labour’s policy, currently devoted to funding free GP visits, will need to be expanded if the party wishes to pay for some of its other policies and those of its potential coalition partners.
However, the move places Luxon in somewhat of an awkward position. He cannot distance himself too much from Willis’ comments without undermining her but can’t be seen to explicitly endorse them either.
Hence the middle ground of stressing Willis’ intent is to bash New Zealand’s Labour and their tax, while arguing her comments don’t impact his relationship with Albanese.
The closest Luxon came to interfering with Australian affairs was when he proclaimed his beloved Maroons were robbed (much to the delight of his company, Queensland Premier David Cristafulli) when Ashley Klein sent off fullback Kayln Ponga in the first State of Origin game last week.
A foreign head of state contesting the call of a rugby league official, which was backed by the NRL, would be among the rarer diplomatic incidents. Even when the All Blacks were dumped from the 2007 World Cup after losing to the French in the quarter-final, thanks in part to a missed forward pass, then-PM Helen Clark urged angry fans not to blame the ref (albeit as referee Wayne Barnes received death threats for blowing a whistle).
When presented with Willis’ criticism, Albanese appeared happy to brush it off as a “bit of cheekiness” and likened it to the banter he and Luxon had engaged in over his football team, Sydney FC, losing to Luxon’s favoured Auckland FC in the A-League final last month.
Willis’ public jesting encouraging Australians to cross the Tasman for more friendly tax settings can be seen as gentle banter. Lambasting another world leader for backing down on a major policy promise for one’s own domestic political gain certainly pushes the boundaries.
The Finance Minister’s claim the backdown was forced by political pressure wouldn’t be an unfair reflection of her own motivations.
The public outcry to Labour’s tax policy has neither been as loud nor as sustained as many in National will have hoped.
Labour is regularly out-polling National as the country’s most popular party, despite its bare policy platform (its first significant policy announcement since the Budget is expected this week).
And like Albanese, National is witnessing the steady growth of a nationalistic, anti-immigration movement spearheaded by New Zealand First and Winston Peters, who is cannibalising National’s vote and shows few signs of slowing down.
In steps Willis, growing in her role alongside Simeon Brown as National’s chief attack dogs, leaving Luxon to focus squarely on convincing Kiwis a steady hand remains on the tiller.
Noosa gave Luxon a platform to reiterate his concerns about a more volatile world order as he seeks to align further with states similarly buffeted by current global headwinds.
Discussions between business representatives from both sides of the Tasman in Noosa appear centred around several key issues, including increasing fuel stockholdings, cultivating energy independence and aligning artificial intelligence regulations.
Twelve months of increasing volatility has changed the calculus in New Zealand’s favour when it comes to reminding a nation of 27 million people it needs to prioritise its relationship with its neighbour.
Whether Luxon can sell any reforms as having a meaningful impact for those on this side of the ditch presents as another of his many challenges before November 7.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.