Policy differences just part of deal, says PM

John Key says he's confident low-income earners will benefit from Budget changes. Photo / Mark Mitchell

Prime Minister John Key said that in government neither "the big dog" nor "the little dog" gets everything it wants.

He was attempting to explain yesterday the differences on major policies between National and the Maori Party on whanau ora, the foreshore and seabed, and the GST-tax cut tradeoff.

One Maori Party MP last week raised the possibility of quitting the support arrangement with National over GST and Mr Key and Maori Party co-leader Tariana Turia have starkly different views on whether whanau ora is a Maori-based policy.

He said smaller parties had their own style of doing things - "they are different to other parties and sometimes you have just got to roll with the punches".

Mr Key also used a simile to describe the Maori Party's whanau ora policy - comparing it to a waterbed.

"I guess the way I look at it is it is a little bit like a waterbed: if you push down on one side, if you don't address the problems it's going to rise on the other side," Mr Key said.

"That's the issue, isn't it? That we are sort of throwing some money at one bit and if we don't fix the other bits the first bit that we're spending money on is completely wasted. We need to get a better holistic approach."

The first roll-out of the policy will get the go-ahead in the May Budget, using existing and new funding, Mr Key said.

It is a policy that will allow private providers to deliver social services to families in need in a holistic way rather families using three or four different government agencies.

But Mr Key and Maori Party co-leader Tariana Turia have different descriptions for the same policy.

Mrs Turia sees it as a Maori solution for Maori problems based on the importance and power of whanau to Maori.

Mr Key sees it as open to anyone as long as the family in need falls within the area of the relevant service provider.

"There is no preferential treatment in whanau ora. It's a different way of doing things and an acknowledgment that currently what we do doesn't work."

He believed New Zealanders would look at the $7.6 billion spent on social welfare "and argue some of the things we are doing are not working and they want different outcomes".

"I am confident that whanau ora will ultimately deliver results for New Zealanders, both Maori and non-Maori New Zealanders."

Mr Key said he had not spoken to Mrs Turia about their differences but wrote to her yesterday about the implementation detail.

Mr Key yesterday said he was still confident that the Foreshore and Seabed Act would be repealed and replaced with something more acceptable to the Maori Party and all New Zealanders.

He said the concept of no ownership of the foreshore and seabed - public domain - had found favour with a lot of Maori leaders.

Mrs Turia does not support it, however.

Mr Key also signalled that the Maori Party would be getting the credit for the compensation measures in the Budget to offset a rise in GST from 12.5 per cent to 15 per cent.

"I'm confident in the end that low-income New Zealanders as a result of their support and their advocacy will get a good deal out of Budget changes that we want to make."