Gillard has a bite of bet-losing NZ apple

UPHOLDING her end of a two-year-old bet on the Rugby World Cup has left a bitter taste in the mouth of Prime Minister Julia Gillard.

Ms Gillard made a bet with New Zealand's Prime Minister John Key on the outcome of the 2010 Rugby World Cup - a deal that would see the leader of whichever country lost eat an apple from the winning country.

Luckily for Mr Key, the All Blacks reigned supreme.

The bet was symbolic of the end of Australia's 90-year ban on New Zealand apples, following a World Trade Organisation ruling that it must allow imports.

Ms Gillard finally honoured the bet during dinner with Mr Key, his wife Bronagh, and Ms Gillard's partner Tim Mathieson in Queenstown, New Zealand, on Friday night.

"I'd have to say, of course, Australian apples are better," Ms Gillard said.

She added that Mr Key had tried to serve her New Zealand apples on multiple occasions.

The two leaders laughed over the bet when they posed with the Cricket World Cup trophy in Queenstown on Saturday.

The two countries will share hosting rights to the event in 2015.

Despite the New Zealand Black Caps' poor performance of late, Mr Key said he was hopeful they could take out the cup in two years' time, but admitted Australia was in a stronger position.

While Ms Gillard was backing the Aussie side, she said she would not be making any more bets on sport with Mr Key.

"I think I've learnt my lesson," she told media, with a laugh.

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