New Zealand Prime Minister HelenClark has poured cold water over a suggestion of a political unionbetween Australia and New Zealand, saying the two countries are moving apart culturally.

A forum held here over the weekend which was attended by 74 high-ranking business and government leaders from both countries looked at issues such as a common currency.

Some commentators even have suggested that New Zealand is not large enough to be viable and should become a state of Australia.

Clark told NewstalkZB on Monday that New Zealand and Australia were different and become more different by the day.

"Our countries have quite different histories and I think if anything the cultures of the two countries are moving further apart."

The prime minister said she took "umbrage" with those who questioned whether a country of 4 million was viable.

"We are very, very viable and I don't think most kiwis would want to lose the uniqueness that is New Zealand," she said.

Referring to the suggestions on a common currency, Clark said, "You have to show it was in New Zealand's interests. The first issue that arises is that the Australians say they are not interested in a new currency, an Anzac currency, but if there is to be a common currency it would be their dollar."

There was no evidence that New Zealand's adoption of the Australian dollar would do any good and there was a fear it could do harm, she said.

Concerning the idea of a common border, Clark said she wouldn'tsupport a common border because Australia has one of the most restrictive regimes in the world.

"New Zealand is the only country I understand where people don't have to get a visa," she said, adding that New Zealand wanted more tourists and giving up visa-free agreements would hurt the country' s industry.

Source: Xinhua