National's policy is to begin the process to abolish the Maori seats once Treaty of Waitangi settlements are completed in 2014.
The Maori Party's policy is to entrench the entitlement to the seats in legislation - which means a 75 per cent majority or a referendum to change them. And it believes that Maori should determine when the seats are abolished.
The spat between Dr Sharples and Mr Key has become less about whether Mr Key has agreed to the Maori Party's position already and more about if one of them is not telling the full story.
Dr Sharples again stood by his claim on Wednesday on Alt TV and his chief of staff, Harry Walker, who was at the meeting, backed him. The meeting was held in Parliament in Dr Sharples' office about two months ago. Party co-leader Tariana Turia and National deputy leader Bill English were present.
Mr Key made his admission while campaigning in Dunedin yesterday. He said Dr Sharples had raised the issue with him many times.
"I've certainly acknowledged it is not a bottom line for us."
Mr Key continued to say no agreement had been made and that would remain so until after the election on November 8.
On TV3 yesterday, Mr Key discussed the issues that could be on the negotiating table with the Maori Party and that included the role of the Treaty.
The Maori Party does not see its MP as being part of the Crown. It wants any larger party it enters into a formal agreement with to recognise it as "the Treaty partner."
Prime Minister Helen Clark was highly critical of Mr Key's statements, saying he had said one thing to the Maori Party behind closed doors "but then its dog-whistle politics to its broader electorate is to say 'we'll get rid of the Maori seats'.
"This really does go to the core of the secret agenda - to say one thing to the public to try to get votes and another thing to try to get a political party on side."
But Mr English said although the matter was discussed, he agreed with Mr Key - there was no agreement.
