8 Feb 2010

Catching up with Australia still a goal - Key

8:31 pm on 8 February 2010

The Prime Minister says that closing the income gap with Australia will be difficult but that it remains a goal of the Government.

Reserve Bank Governor Alan Bollard has repeated comments he made in a speech last November, namely, that rather than try to match Australian incomes, New Zealand should take advantage of Australian growth.

Mr Key says he won't write off New Zealand's ability to close the gap with Australia just because Dr Bollard says it's difficult to achieve.

But he says Dr Bollard is right in saying that New Zealand benefits from a strong economy in Australia.