John Armstrong: Win-win for Clark and Peters

He said it would take three weeks. He has pretty much kept his word.

Thanks to Winston Peters, all of a sudden we would seem to have a Government. Moreover, it is looking like one which will be more stable and thus more durable than initial predictions suggested.

The finishing touches still have to be put to the deals struck between Labour and New Zealand First and Labour and the Greens.

But two statements issued by the caretaker Prime Minister yesterday after her talks with Mr Peters had the firm ring of him having given his party's "in principle" backing to Labour on confidence and Budget motions.

When combined with the Greens and Jim Anderton, Labour will have a comfortable 64-57 vote margin in the 121-seat Parliament.

Helen Clark's statements would not have been issued if there was any lingering doubt about Mr Peters supporting a Labour-led administration.

His handshake will have required some major policy concessions on Helen Clark's behalf.

The big plus for Labour is the governing arrangement will have fewer essential components - four parties rather than six. It should therefore be more stable. New Zealand First and the Greens will have their slanging matches - but then so did the Greens and United Future in the previous parliamentary term.

The immediate loser is the Maori Party.

Tariana Turia overplayed her hand, especially by inviting Mr Peters, National's Don Brash and United Future's Peter Dunne to a secretive meeting on Tuesday to gauge the prospects for a National-led alternative administration.

That backfired. Mrs Turia's behaviour simply confirmed to Helen Clark that she could not afford to be in the position of relying on the Maori Party's four votes to govern.

Mrs Turia may be pleased she will no longer be obliged to prop up Labour. But her colleagues may live to regret the flip-flopping statements and anti-Labour sentiment displayed by their leadership in the last three weeks.

United Future's three votes would likewise no longer seem to be required on confidence measures.

Mr Dunne may also be happy his decision has been made for him.

He can now align his right-leaning centre party more comfortably with National without anyone being able to accuse "Mr Stability" of being irresponsible - the charge which will surely be laid at Mrs Turia's door by Labour once normal politics have resumed.