KEY POINTS:
A wounded Labour has gone on the offensive over its failed attempt to introduce a transtasman regulatory agency for medicines and therapeutic products, but the party also faces accusations that it didn't consult National enough.
Labour shelved plans for the new regulatory agency on Monday, conceding it couldn't summon enough parliamentary support for the legislation.
The embarrassing situation has led to claims of a lame duck Government, but the fallout in Parliament yesterday focused more on who was to blame for the stalemate.
The minister in charge of the bill, Annette King, attacked National's decision not to back the agency which she suggested flew in the face of that party's stance several years before.
But National Party leader John Key claimed that a late compromise deal drawn up by New Zealand First leader Winston Peters was never actually put to his party to consider.
The compromise fell just short of succeeding, and was very similar to what National had outlined in private talks that it might be prepared to support.
"We've never seen the compromise," Mr Key said yesterday.
The compromise would still have established an agency but would also have given makers of New Zealand-based complementary products the option of being regulated by it instead of forcing coverage on them.
A domestic regulatory regime would exist for those who opted out.
Mr Key said National had made its position clear several times to Labour and to the Australian Government, that if complementary medicines were "carved out" of the equation but could voluntarily opt-in, then his party would vote for the legislation.
National is being accused of opposing the agency purely to embarrass Labour, while risking damage to the transtasman relationship at the same time.
In a feisty exchange during question time yesterday Ms King said National's deputy leader Bill English had "a bad case of amnesia" because as Minister of Health several years ago he had agreed to urgency to set up a joint regulator.
"I have many other documents to show that the National Party, from August 1997, wanted a joint regulator to be set up," she said.
National appears relatively unconcerned that the standoff might upset the Australian Government. Mr Key said last night he did not think the issue was of great interest in Australia.
