Australian agreement discourages New Zealanders' emigration

The Prime Minister of Australia, John Howard, has gone to New Zealand to unveil tougher new Australian welfare rules aimed at discouraging New Zealanders from moving to Australia.

The Australian government believes the move to radically alter the immigration status of New Zealanders could save it half-a-billion dollars in welfare payments over the next ten years.

New Zealand hopes the measures will slow down the so-called "brain drain" of skilled workers leaving New Zealand by making Australia less attractive.

After talks with the New Zealand Prime Minister, Helen Clark, the two leaders are expected to formally announce the agreement on Monday. Until now New Zealanders have had an automatic right to Australian residency, and been granted benefits after two years.

From Monday they will be barred from welfare entitlements unless they apply for residency under the same criteria as all other migrants.

From the newsroom of the BBC World Service