Australia is spending 17 times more on defence than its closest neighbour and alliance partner New Zealand, an independent think-tank says.
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But the Australian Strategic Policy Institute says walking away from the strategic relationship would cost Australia $1 billion a year and is recommending more joint activity to freshen the relationship.
The institute has compared defence capabilities of both nations and says while both have shared values and common interests, New Zealand doesn't match Australia's defence effort because it knows Australia will shoulder the burden.
Australia looks to the US the same way, and has a strong financial incentive to nurture its alliance with New Zealand, a report by ASPI defence analyst Mark Thomson has found.
"A conscious effort is needed to stop the relationship from becoming stale and, more critically, to bolster it against buffeting from a region in strategic transition," he said in the report released on Wednesday.
A combined maritime surveillance command would give Australia and New Zealand joint responsibility for people smuggling and fisheries protection in the South Pacific and Antarctica, or the entry of hostile forces, he suggested.
"The critical question is what New Zealand will be able to bring to the table," Dr Thomson said, suggesting it follow Australia's lead and replace P-3 Orion maritime patrol aircraft with P-8 Poseidon.
Alternatively, Australia would benefit from New Zealand buying at least one Triton long-range surveillance drone to supplement Australia's acquisitions.
Australia should also involve New Zealand in the program of international defence engagement and combined exercises, outlined in the 2016 Defence White Paper, particularly those involving the US, he said.
Dr Thomson also warned when it comes to the US role in the Pacific, Australia and New Zealand will tread a fine line in coming years between the unpredictability of US President Donald Trump, and threats of economic punishment from Chinese President Xi Jinping.
That could bring the two nations closer together or tear them apart.
New Zealand, as the least committed partner to relations with the US, is at the greatest risk of becoming a Western ally with Chinese characteristics, Dr Thomson said.
Australian Associated Press
