Peters agrees deal but talks to National

New Zealand First Party leader Winston Peters is keeping his options open.

New Zealand First leader Winston Peters has agreed to take a ministerial role outside the Cabinet as part of a support agreement with Labour, the Herald understands.

But National is scheduled to present Mr Peters with a counter-proposal today on what New Zealand First could expect in a centre-right Government.

Mr Peters allegedly requested a written proposal, sources said, but he could not be contacted last night.

But any proposal may well be a sequel to talks National leader Don Brash held on Tuesday with Mr Peters, United Future leader Peter Dunne and Maori Party co-leader Tariana Turia to promote an alternative Government.

Dr Brash and deputy Gerry Brownlee held another meeting yesterday with Mrs Turia and Mr Dunne. Mr Peters was said to be delayed by a caucus meeting.

Mr Brownlee would not comment last night.

New Zealand First reached an in-principle decision on Wednesday to back Labour with a positive vote on confidence and supply rather than abstain.

New Zealand First runs the risk of being seen to play off one party against the other if it meets again with National and tries to use it for leverage with Labour.

Prime Minister Helen Clark is understood to have pressed Mr Peters for some time to accept a ministerial post.

Her motive is to try to give New Zealand First a greater stake in the Government and thereby lock in its support. No portfolios have been agreed to.

But the Senior Citizens portfolio is seen as a prospect that could enhance his party's association with the Golden Age concession card and increases in superannuation.

The post of Attorney-General might also carry added status but the litigation Mr Peters is involved in, including an electoral petition against National Tauranga MP Bob Clarkson, and a defamation suit against TVNZ, could be problematic.

Acceptance of a ministerial post is likely to carry potential problems for Mr Peters, who had been adamant that his party would not go into coalition.

A post outside the Cabinet would give him greater distance from Labour than a post inside. But technically, any minister is a member of the Executive and is necessarily part of the Government.

For example, he or she would be expected to answer questions in the House about his portfolio on behalf of the Government.

The other problem associated with a ministerial post for Mr Peters is whether the Green Party would support Labour if it were not offered a similar post.

But even if it were to downgrade its support to an abstention, Labour would have enough support to govern. And the Greens have pledged to do nothing to bring down a Labour-led Government.

Labour's talks on the new Government appeared to advance yesterday. Helen Clark met Mr Peters, Greens co-leaders Jeanette Fitzsimons and Rod Donald, and Mr Dunne.

Helen Clark said through a spokeswoman she was very happy with the progress made yesterday.

"The Prime Minister is determined to get it right. The key thing is to lock in a stable and durable Government and that will be given priority whether it happens today, tomorrow, the next day or next week."

Helen Clark's chief of staff, Heather Simpson, met Maori Party negotiator Ken Mair and Waiariki MP Te Ururoa Flavell.

Mrs Turia was not prepared to speak after the meeting, but a spokeswoman said the meeting was productive and had produced "a few more things to talk about".

She would not say whether Labour asked for confidence and supply but said, "We are talking and that's good".

Her party was "building relationships".

She said Dr Brash had not offered the Maori Party anything "at this stage".

"We want to be sure that we have a relationship first. We've got principles, we've got values. We want to make sure they are understood and respected. That's the first part of our discussion."

Mr Dunne said New Zealand First's talks with Labour had no influence on him.

He said he was "nearly there" when it came to taking something to his board to consider.

Some minor details had to be resolved but "nothing significant".

The Labour caucus is still on standby to fly to Wellington to approve arrangements for the Government.

But before that happens, the parties reaching agreements with Labour will have the opportunity to see each other's arrangements.

* The final count for the September 17 election gives Labour 50 seats; National 48; New Zealand First 7; the Greens 6; the Maori Party 4; United Future 3; Act 2; and Progressives 1.