New Zealand declines to join Australia

In the late 19th century New Zealand was counted as one of the seven colonies of Australasia, alongside New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania. It had taken part in Australian colonial conferences since the 1860s. When the colonies met informally in 1890 to discuss federation, New Zealand sent Captain William Russell, its colonial secretary, and Sir John Hall, and it was represented again at the first National Australasian Convention in Sydney in 1891. Its delegates said there was little support for federation at home and that New Zealand was unlikely to join at the start, though it would probably be interested later. When federation became a serious prospect later in the decade, NZHistory notes, New Zealand took no part in the negotiations and there was little public interest. The 1899 decision to federate the Australian colonies changed that, sparking some agitation in favour of joining, and the conservative opposition called for a referendum.

Premier Richard Seddon set up a royal commission in 1900, in NZHistory's words 'to buy time and get a sense of public opinion'. The Commonwealth of Australia came into being on 1 January 1901, when its constitution came into force. Early that year the Federation Commission toured New Zealand to hear submissions. Of 185 witnesses, 112 were against federation, 50 were for it and the rest were undecided. Manufacturers were particularly opposed because they feared they could not compete with Australian-made goods; Mr Fostick of the Federated Boot Manufacturers foresaw the annihilation of his industry. Many farmers were in favour, fearing new trade barriers to their produce if New Zealand stayed outside the federation.

On 30 May 1901 the 10-man commission reported unanimously that New Zealand should not become a state of the Commonwealth. It recommended that 'New Zealand should not sacrifice her independence as a separate colony'. The 1200 miles (about 1900 km) of often stormy sea between the two countries were held up as 1200 arguments against federation. According to Te Ara, people feared federation might put New Zealand's social reforms at risk, and New Zealanders believed they were a better type; NZHistory adds that some pointed to the 'convict stain' of Australia's origins. Another reason given was a perception that Māori would suffer under federation. Seddon himself preferred to be premier of an independent country rather than of an Australian state ranking third after New South Wales and Victoria. A cartoon of 1900 showed him riding a hobby horse labelled 'South Pacific Federation', and in 1901 he persuaded the Colonial Office to let New Zealand annex the Cook Islands. The same year Britain gave Niue to New Zealand for its services in the South African War (see New Zealand troops sent to the South African War).

Australia's constitution still names New Zealand among the colonies that could be states: its sixth covering clause defines 'The States' as 'such of the colonies of New South Wales, New Zealand, Queensland' and the others as are part of the Commonwealth. In Te Ara's assessment, federation consolidated national identity on both sides of the Tasman and strengthened the view that New Zealand should not sacrifice its independence. Symbols of nationhood followed, including a flag in 1902 and a coat of arms in 1911. New Zealand's closer economic links with Britain hindered trade across the Tasman, and the share of New Zealand's exports by value going to Australia fell from about 20% in 1900 to 5% in 1920. The New Zealand–Australia Free Trade Agreement of 1965 and Closer Economic Relations from 1983 later brought the two economies close together, but NZHistory observes that political union is no closer today than it was in 1901.