De luxe deals only for support, says Clark

Greens co-leaders Rod Donald and Jeanette Fitzsimons arrive at the Beehive yesterday for their meeting with Helen Clark. Picture / Mark Mitchell

Prime Minister Helen Clark began round two of talks yesterday after hinting that Labour expected to offer de luxe deals only to parties that supported it on confidence-and-supply votes - rather than those abstaining, as New Zealand First plans to do.

A de luxe agreement would allow a party the right to propose Budget measures under a confidence-and-supply arrangement.

The New Zealand First caucus, cut from 13 to just seven, will meet today in Wellington to discuss its relationship with Labour and what policy concessions it might win for not opposing the Government.

But if Labour stuck to past practice, and New Zealand First kept to its preference to abstain, it would mean that Winston Peters' party would have an uphill job of negotiating several of its costly key policies: the Golden Age card for senior citizens, removing GST from the price of petrol and boosting police ranks by 5000.

It would be easier for NZ First to win agreement to review the Immigration Act, because it is planned anyway, and get some changes to the Waitangi Tribunal.

Helen Clark did not rule in or out any option but indicated yesterday that past practice had seen levels of co-operation between Labour and supporters vary according to the level of support.

Only parties that had supported it on confidence and supply - the Greens in its first term and United Future in its second - had been given the ability to propose Budget measures, she said.

Asked if she might consider allowing budgetary measures to a party abstaining, she said: "We haven't taken that below the level of confidence-and-supply agreement."

Not only is abstention a preferred option for New Zealand First, it is a real possibility for the Maori Party and an unlikely option for the Greens if they were offered next to nothing.

Helen Clark stressed that the absence of support on confidence and supply would not prevent a party having a high level of policy co-operation, as the Greens did last term, proposing policy ideas outside the Budget process. She expected that the same sort of consultation over legislation and policy could continue with other parties.

"We would be looking for engagement throughout the three years at leadership level, at ministerial level and at select committee level as well, of course, at the whips level. We know MMP requires a lot of power-sharing and a lot of consultations."

Helen Clark met leaders of the Greens and Maori Party yesterday. Next up are Mr Peters and United Future leader Peter Dunne.

Greens co-leaders Rod Donald clarified his party's position on a coalition Government comprising United Future but not the Greens, saying the party "could not commit to supporting a government that included Peter Dunne but not us".

That was not the same as a veto. Mr Dunne has said he could not support a government with the Greens inside or outside the Cabinet.

Maori Party co-leader Tariana Turia said she did not expect her party to be in coalition but that was up to a consultation hui planned for this week.