Clark sets up Govt with good faith, no surprises deal

5.10pm

Prime Minister Helen Clark today signed coalition and support agreements with two parties, setting up her new government for a three-year term in office.

Those agreements rest on a "good faith and no surprises" foundation, and give Miss Clark an assured majority in Parliament on crucial confidence and supply votes.

Labour is now in coalition with the Progressive Coalition Party and has a binding agreement with the United Future Party. The two agreements give the minority government 63 votes in the 120-member Parliament.

Miss Clark, Progressive Coalition leader Jim Anderton and United future leader Peter Dunne signed the agreements in Parliament, pledging stability and good government for the next three years.

The prime minister said she had informed Governor-General Dame Silvia Cartwright that she had formed a government, and Parliament would open on August 26.

"The coalition agreement between Labour and the Progressive Coalition Party has the objective of providing stable government over the next term of Parliament," Miss Clark said.

"The two parties will operate in government on a good faith and no surprises basis.

"The Government and United Future will operate on a good faith and no surprises basis."

Miss Clark confirmed that Mr Anderton would have a seat in Cabinet. He is expected to continue as Minister for Economic Development.

United Future is outside the Government and Mr Dunne will not have a cabinet position. He said he had not sought one.

The Greens, who have been in negotiation with Labour since the election, do not have any agreement with the Government but Miss Clark said discussions would continue so that a "collaborative working relationship" could be established.

United Future's gains through the agreement are close consultation on legislation and swift progress on its core policies.

Miss Clark said proposals for a Commission for the Family would be developed by the end of the year, and legislation would be passed on victims' rights and alternative funding options for roading.

The Progressive Coalition has scored through recognition of the need for a comprehensive drug strategy policy, co-ordination of industry assistance and a balance between work and family responsibilities.

There are "agree to disagree" provisions in both the agreements, but Mr Anderton and Mr Dunne emphasised there would be no unexpected moves which could destabilise the Government.

Miss Clark, speaking at a press conference after the signing ceremony in Parliament's Legislative Council Chamber, said she was confident of achieving a working relationship with the Greens so the party could support legislation.

She said the Government would not introduce legislation to legalise cannabis, something the Greens want.

Mr Dunne said his party had delivered on its commitment to help provide stable government, and it had done that while preserving its independence by not being part of the coalition.

"There may well be occasions where we differ. That is almost inevitable," he said.

"But the processes we will operate under will ensure there are no surprises. The agreement is absolutely explicit."

Mr Dunne brushed aside questions about the strong moral and religious views of some of his MPs.

"I'm a mainstream, moderate person. People who know me know that it's very difficult to hijack me," he said.

The make up of the Government, in terms of seats in Parliament, is that the coalition has 54 seats (Labour 52, Progressive Coalition two), with support from United Future which has nine.

- NZPA

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