Beehive abuzz with coalition rumours

Finance Minister Michael Cullen (2nd left) with fellow ministers this week. Parliament is awash with talk as the election result hangs in the balance. Picture / Mark Mitchell

The political rumour mill is working overtime as the country waits to find out who will form the next government.

Greens co-leader Rod Donald said today he had heard a rumour that his party had already signed a deal with Labour and the Maori Party. 

But he said that was "definitely" not the case.

Another rumour is that NZ First asked for two Cabinet posts in return for its support of Labour, which won the most seats under the provisional election results.

This would be contrary to its position being not to go into coalition, and NZPA has been told that talks between caretaker Prime Minister Helen Clark and NZ First leader Mr Peters did not cover possible Cabinet posts.

Mr Donald added that it seemed Mr Peters had confirmed he would not place any impediments in the way of Labour forming a government. This was, he said, "a very constructive position to take".

United Future leader Peter Dunne said today that a suggestion in the Herald that thought was being given to offering him a ministerial post outside Cabinet to secure his party's three votes was "news to me''.

He would not comment on whether that was what he wanted.

The next round of talks between Labour and the minor parties is expected to involve officials, and will go into the details of the options that are on the table for forming a new government.

The talks will continue this week but little can happen until the final shape of Parliament is known on October 1, when the final vote is declared.

- NZPA, HERALD ONLINE STAFF