KEY POINTS:
Prime Minister Helen Clark expects to stay onside with the Green Party, despite its reminder that there is just one more Budget for the Government to deliver on its promises or face a possible withdrawal of co-operation.
Green co-leader Jeanette Fitzsimons said the party expected the Government would fulfill all its promises, but if it did not the party could consider itself released from its agreement to abstain on confidence and supply votes.
Next year's Budget was the last chance for funding of the initiatives promised in the agreement.
"There will be a substantial negotiation process before that Budget," she said. "But we have no wish to pull the Government down and they have no wish to fall. We will reach a meeting of minds."
A spokeswoman for the Prime Minister said the Government valued its relationship with the Greens.
"Provided both parties continue to work in good faith with one another, [Helen Clark] expects it to continue throughout the Parliamentary term."
Ms Fitzsimons said: "We have kept our word to abstain. The Government has fulfilled some of its undertakings in the agreement. There is another year and a half to go, we will expect them to continue fulfilling the agreement. If they were to stop doing that, then of course we will be released from our side of the agreement as well."
Ms Fitzsimons would not list specific areas in which she thought the Government had fallen short of promises.
However, there was dissatisfaction over last week's Budget, which Ms Fitzsimons said took only "teensy weensy" steps over climate change and fell far short of Labour's goal of becoming carbon neutral.
The agreement made after the 2002 election allows covers a range of policy initiatives. The top two areas are energy efficiency, which includes climate change policies, and the Buy Kiwi Made scheme.
