Season stales settlement of apple bet

Relevant offers

Politics

Treaty obligations to stay in SOE sales law McCully email thief could be Kiwi PSA disappointed Key won't discuss cuts Delays in privatising ACC work account No background checks on Education ministry staff Labour fears for Kiwis in ministry shake-up The one-seat threshold Today In Politics: Thursday, February 23 Police complaint over election programme McCully's emails revealed

A lack of New Zealand apples across the Tasman is being blamed on Australian Prime Minister Julia Gillard failing to follow through on her bet with John Key over the Rugby World Cup.

Gillard promised to eat a New Zealand apple as the price of losing her bet that the Wallabies would take home the cup.

But three months after the Rugby World Cup final Ms Gillard still hasn't honoured the bet and Key says he won't push the issue.

In Melbourne this weekend for a series of meetings with Gillard and members of her cabinet, Key said he was sure the bet would be honoured "at some point" but not right now because New Zealand apples were out of season.

"We might struggle to get her an apple I think."

Apples have been a sore point in the trans-Tasman relationship for nearly 100 years after Australia refused to allow New Zealand apple exports for fear they would spread fire blight.

But Australia was forced to open its borders after a lengthy case to the World Trade Organisation which New Zealand won.

The issue has flared as a thorn in the relationship again after Tasmania refused to honour the WTO ruling - possibly the reason the Australians are so senisitive about Gillard being photographed honouring the apple bet.

New Zealand could take Australia to the WTO to enforce the ruling and could also seek sanctions. Pip fruit growers have been urging the Government to act.

But Key made it clear yesterday New Zealand was reluctant to go down that path.

"The Australians have accepted the WTO ruling and they are implementing that so it's really a matter for them to make sure that they ultimately hold Tasmania to account."

Tasmania was a "pretty small market" and New Zealand was pleased with the way the rest of Australia had accepted the ruling.

Key and Gillard spent last night at the tennis together and were today in a joint cabinet meeting with ministers from both sides of the Tasman.

They are expected to make a defence announcement following the meeting.

- © Fairfax NZ News