Senator WATSON —My question is directed to the Leader of the Government in the Senate in his various capacities, and particularly in his capacity as representing the Treasurer. I refer to the needed removal of the trans-Tasman business restrictions under closer economic relations (CER) with New Zealand and the creation of a level playing field between the two countries. My question is: what steps is the Government taking to remove the tax disincentives to trade, given the disparities in corporate tax rates and the differences in jurisdictions relating to tax credits for tax paid in the other country?

Senator BUTTON —As I recall it, that matter was discussed by officials during the visit of Mr Palmer, the then Prime Minister of New Zealand, to Australia six or seven weeks ago. All I can say is that that question is under examination, as all aspects of CER relating to business regulation and so on have to be. What the outcome of those considerations will be it is too early to say.