New bridges across the Tasman

Australian Prime Minister Julia Gillard has built new bridges across the Tasman by signing an investment agreement and paying tribute to the close friendship between New Zealand and its closest neighbour.

During her 30-hour visit to New Zealand, Ms Gillard emphasised the mutual support shown in recent months, and pledged to restore regular prime ministerial meetings.

Her visit to Parliament yesterday came only minutes after news broke that New Zealand Army Private Kirifi Mila had died in a vehicle crash in Afghanistan.

She used an historic speech to Parliament, the first by a foreign leader, to speak about the "terrible news".

She said New Zealand and Australia were "family" and both the Pike River mine disaster and natural disasters in her country were felt on both sides of the Tasman.

Ms Gillard was applauded when she said Australia accepted the World Trade Organisation's decision to allow New Zealand apples to be imported.

She touched on the prospect of the Trans-Pacific Partnership (TPP), and mentioned challenges from change and power shifts in the Asia-Pacific region.

In the House, she approached MPs including Health Minister Tony Ryall who caught her attention with his tie, and Green Party co-leader Russel Norman who shares an Australian heritage.

Ms Gillard and Prime Minister John Key signed the CER Investment Protocol, which sets a higher threshold for investment that would not need Overseas Investment Office approval.

The threshold will be $NZ477 million for Australian investments in New Zealand, and $A1.005 billion ($NZ1.33 billion) for New Zealand investments in Australia.

The thresholds will change annually based on GDP.

Ms Gillard and Mr Key both said the agreement would deliver more jobs.

During bilateral talks, both prime ministers committed to continue working toward a single economic market.

They would work on establishing a joint patents examination system and more competitive mobile roaming charges.

Both welcomed the establishment of a joint ready response force, which will focus on humanitarian assistance and disaster relief in the region, and reiterated their commitment to making travel across the Tasman easier.

Ms Gillard and Mr Key also aimed at eliminating whaling in the Southern Ocean, and expressed concerns about the continuing deterioration in Fiji's political and economic situation.

Ms Gillard briefed Mr Key on developments on a regional processing centre for asylum seekers, and said talks with East Timor were continuing.

Ms Gillard personally thanked and shook the hands of New Zealand volunteers who helped during the Queensland floods.

She also met about 15 people outside Parliament, waiting to catch a glimpse of her.

She met Opposition leader Phil Goff, and presented former trade and industry minister Hugh Templeton with the Order of Australia

She held a joint wreath-laying ceremony with Mr Key at the National War Memorial, and ended her visit with a kiss on Mr Key's cheek.