Australian agreement discourages New Zealanders' emigration

The Australian prime minister, John Howard, has gone to New Zealand to unveil new welfare rules aimed at discouraging New Zealanders from moving to Australia.

His government believes the move radically to 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 numbers of skilled workers leaving New Zealand by making Australia less attractive.

Mr Howard will have talks with the prime minister of New Zealand, Helen Clark, and they are expected to 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