Govt and Greens get closer together

A new agreement between National and the Green Party will deliver a scheme to help insulate and heat private and rental homes by mid-year, with funding expected in the May Budget.

The National Party and Green Party yesterday signed a memorandum of agreement, specifying three initial areas of work, although it stops short of promising actual policy gains for the Greens.

Green Party co-leader Jeanette Fitzsimons and Energy Minister Gerry Brownlee are developing a government scheme to deliver insulation and more efficient power and heating to private and rental homes.

The agreement stipulates the scheme must start before July 1 this year and Ms Fitzsimons yesterday let slip that funding for it would be included in the Budget.

Beyond confidentiality and an undertaking to act in "good faith" there are no further obligations on the Green Party which is unlikely to support the Budget which will deliver the funding for the scheme.

But the formality and extent of the agreement is more than the Green Party was expected to secure, given its opposition to the majority of National's core policies and its decision to rule out supporting National before the election.

Prime Minister John Key said it was a "baby step" for the two parties but reflected their willingness to work across Parliament under MMP and make the use of the Green's expertise.

Green co-leader Russel Norman said it was critical for the party to retain its independence, but it had never ruled out working with National in areas it could secure gains.

Labour leader Phil Goff said he hoped the Greens would act as a left-wing counter-weight to the Act Party's influence.

Under the arrangement, the Greens will be given access to officials and advice - including Cabinet papers - and input into decisions made in the areas the parties are working together on.

They will be bound by confidentiality until public announcements are made - but will not have to vote for the eventual outcomes. They have also agreed to "consider" supporting the Government on procedural motions - such as urgency or granting leave - but only on a case-by-case basis.

Mr Key said many National voters were concerned about the environment and wanted the party to work with the Green Party.

The Council of Trade Unions said it was pleased to see a home insulation scheme was coming to fruition but "significant investment" was needed.

CTU secretary Peter Conway said it was one of the ideas the union and others had taken to the Job Summit and could create significant employment and up-skilling opportunities, as well as improving homes.

Although likely to be more modest, it would replace the $1 billion scheme Labour had promised the Greens in return for support for the emissions trading scheme.

Other areas on which the parties will work together include a domestic regulatory system for natural health products and energy efficiency projects.

Mr Key has not ruled out future areas of co-operation in the future.

THERAPEUTIC MEDICINES BACK ON AGENDA

A controversial attempt to impose a joint transtasman regulatory regime on therapeutic medicines looks set to be resurrected under National - albeit with a major change.

Under the new National and Green Party agreement, Green MP Sue Kedgley will work with Health Minister Tony Ryall and associate Jonathan Coleman on setting up a domestic regulatory regime for complementary medicines, such as vitamin supplements.

It signals that National intends to look again at signing up to the transtasman therapeutic medicines regime which stalled under the previous Labour Government in 2007.

Labour was unable to secure sufficient support for it after the Green Party and National opposed including complementary medicines because of the costs of compliance.

Yesterday, Prime Minister John Key said any attempts to resurrect the plans would require agreement with the Australian Government. Last month, Mr Key broached the topic at his formal meeting with Australian Prime Minister Kevin Rudd and it was listed as one of the areas in which significant progress was hoped for in the next year.