KEY POINTS:
National has begun a second round of talks with the Maori Party in a bit to fast-track progress towards forming a government.
A deal with United Future is nearly complete, and Prime Minister-elect John Key is preparing to name his Cabinet early next week.
Mr Key yesterday met all three of the parties from which he is seeking support, and the Maori Party indicated it may be able to make a decision about a deal as early as Sunday.
That would fit Mr Key's desire for a fast conclusion to talks so he can name his team and attend next week's Apec leaders' summit in Peru as Prime Minister.
Today Maori Party co-leaders Tariana Turia and Pita Sharples arrived for the second round of talks about 15 minutes late and dodged waiting media by entering National's offices through the back entrance.
National does not need the Maori Party to govern, but it is trying to reach some kind of agreement so will have as many as 70 votes on its side in the new Parliament.
The Herald understands one Maori Party MP could become an associate Maori Affairs minister in return for the party abstaining on confidence and supply votes.
To get a bigger role the party is likely to have to support National, rather than only not opposing it.
Tuesday's meetings
Yesterday's meeting between the two parties included Mrs Turia and Dr Sharples and president Whatarangi Winiata, who were welcomed by National's Maori MPs Georgina te HeuHeu and Tau Henare.
They then met Mr Key and National's deputy leader Bill English.
"Things are progressing well," Mr Key said. "It was a preliminary meeting, it's at a reasonably high level at this point, but I thought it was very positive."
National talked yesterday to United Future leader Peter Dunne for the second time and the pair now have a draft agreement that Mr Dunne said was likely to be concluded within a couple of days.
He said it contained policy concessions, but he would not discuss what ministerial role he might take.
National is also still talking to Act but yesterday's meeting lasted only 15 minutes.
Act leader Rodney Hide said "a bit more research and a bit more consultation" were needed.
Mr Hide agreed that reaching a compromise on the emissions trading scheme - which Act wants scrapped - would be difficult.
Mr Hide would not confirm whether he wants his party to have more than one ministerial post and suggested he was more interested in policy gains.
It is possible National may have to turn to the Maori Party to secure support to amend the emissions trading scheme, meaning the party may gain leverage in its negotiations.
Act and National are likely to meet again in the next two days.
Mr Hide and his four MPs have received a briefing from the Treasury about the economic and fiscal outlook, as has Mr English.
Mr Key was yesterday briefed by Reserve Bank Governor Alan Bollard and today will receive a formal Treasury briefing.-
- ADDITIONAL REPORTING: Audrey Young
